P R O S P E C T U S AZ Fund 1

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P R O S P E C T U S

On the offer of units of the umbrella collective investment fund

AZ Fund 1 Mutual fund established under Luxembourg law

35, avenue Monterey L- 2163 Luxembourg

Grand Duchy of Luxembourg

The Units are distributed solely on the basis of information contained in the Prospectus, the key information for the investor, the latest annual report and the latest interim report published after the annual report. Only information contained in the Prospectus, key information for the investor sheets and financial statements shall be provided. This sheet with key information for the investor shall be offered free of charge to every potential investor before a contract is concluded. It is available free of charge at the Management Company’s registered office and at the Main Distributor's registered office in Italy. The units of each AZ Fund 1 sub-fund are aimed at retail and / or institutional investors unless otherwise stated in AZ Fund 1 documentation.

This prospectus is valid as of February 2020

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AZ Fund 1

35, avenue Monterey - L-2163 Luxembourg Grand Duchy of Luxembourg

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AZ Fund 1 (the “Fund”) is officially registered as an undertaking for collective investment under Part I of the Luxembourg Law dated 17 December 2010 relating to undertakings for collective investment, and subsequent amendments (hereinafter, the “2010 Law”). Nonetheless, its registration is not an indication of approval by the Luxembourg authorities of the quality or accuracy of the present Prospectus or the Fund’s portfolio. Any statement to the contrary is prohibited and unlawful. The Company’s Board of Directors (hereinafter, the "Board") has taken all the necessary steps to ensure that the information provided in the Prospectus is true and accurate and that no significant details have been omitted that would lead to an incorrect interpretation of the information provided. All Board members (hereinafter, the “Directors”) assume responsibility for this. Any information or indication not contained in this Prospectus or the key information for investor, or in the financial statements that form an integral part thereof shall be considered unauthorised. Neither the delivery of this Prospectus and/or the key information for the investor, nor the offer, issue or sale of units of the Fund (hereinafter, the “Units”) constitute a statement of the accuracy of the information provided in this Prospectus and key information for the investor after the Prospectus and key information for the investor reporting date. This Prospectus and key information for the investor shall be updated in due course to incorporate any significant changes. It is therefore recommended that Unitholders request information from the Company regarding any further Prospectus or key information for the investor publications on the issue of Sub-fund Units. The Fund is subject in particular to the provisions of part I of the 2010 Law about Undertakings for Collective Investments in Transferable Securities, as established by the European directive of 2009/65/EC co-ordinating the legislative, regulatory and administrative provisions relating to some undertakings for collective investment in transferable securities (UCITS), as amended. The Units have not been registered in accordance with any United States financial legislation and thus may not be directly or indirectly offered or sold in the United States of America or any of its States, territories, possessions or areas subject to their jurisdiction, or to United States citizens, residents or habitual residents. Investors are advised to inform themselves of any taxation consequences, legal controls, foreign exchange restrictions and exchange control regulations to which they may be subject in their respective countries of domicile, citizenship or residence, and which may be applied to the subscription, purchase, ownership or sale of Units. Units are traded in Italy, Switzerland, Germany and Austria. SUBSCRIPTIONS, REDEMPTIONS AND CONVERSIONS ARE UNDERTAKEN USING FORWARD PRICING. THE COMPANY DOES NOT AUTHORISE PRACTICES ASSOCIATED WITH MARKET TIMING AND RESERVES THE RIGHT TO REJECT APPLICATIONS FOR SUBSCRIPTIONS OR CONVERSIONS FROM INVESTORS SUSPECTED OF ENGAGING IN SUCH PRACTICES AND TO UNDERTAKE, WHERE APPLICABLE, THE NECESSARY MEASURES TO PROTECT OTHER INVESTORS IN THE FUND. IN THE EVENT THAT A REDEMPTION APPLICATION IS PLACED BY AN INVESTOR SUSPECTED OF ENGAGING IN MARKET TIMING PRACTICES, THE COMPANY RESERVES THE RIGHT TO REJECT ANY SUBSEQUENT SUBSCRIPTION APPLICATIONS FROM SAID INVESTOR.

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Index Index ......................................................................................................................................................................................................... 4 Definitions ................................................................................................................................................................................................ 5 1. Establishment – Legal form ........................................................................................................................................................ 10 2. Fund Targets ................................................................................................................................................................................. 10 3. Investment policy and restrictions .............................................................................................................................................. 11 4. Management and administration ................................................................................................................................................ 34 5. Fund and Company Auditor ........................................................................................................................................................ 37 6. Custodian, Paying Agent, Registrar, Transfer Agent and Administrative Agent ................................................................. 37 7. Unitholder rights ........................................................................................................................................................................... 39 8. Unit classes ................................................................................................................................................................................... 39 9. Unit Issue and Subscription Price .............................................................................................................................................. 40 10. Unit Redemption ...................................................................................................................................................................... 42 11. Conversions ............................................................................................................................................................................. 42 12. Net asset value ........................................................................................................................................................................ 43 13. Suspension of net asset value calculation, subscriptions, redemptions and conversions ........................................... 44 14. Income distribution .................................................................................................................................................................. 45 15. Costs borne by the Fund ........................................................................................................................................................ 45 16. Financial year .......................................................................................................................................................................... 47 17. Financial statements and reports .......................................................................................................................................... 47 18. Management regulations........................................................................................................................................................ 47 19. Fund Duration – Fund Liquidation and closure or merger of Sub-funds ......................................................................... 48 20. Legal action .............................................................................................................................................................................. 49 21. Prescription .............................................................................................................................................................................. 49 22. Fiscal aspects .......................................................................................................................................................................... 49 23. Benchmark Regulation ........................................................................................................................................................... 50 24. Data processing....................................................................................................................................................................... 52 25. Document registration ............................................................................................................................................................ 52 SECTION A RESERVED TO RETAIL INVESTORS ...................................................................................................................... 54 APPENDIX I: SUB-FUND FACTSHEETS ........................................................................................................................................ 55 APPENDIX II: VARIOUS UNIT CLASSES FOR RETAIL INVESTORS AND RESPECTIVE FEES. .................................... 429 APPENDIX III - RISK PROFILE SPECIFIC TO INSURANCE-LINKED SECURITIES (ILS) .................................................. 435 SECTION B RESERVED TO INSTITUTIONAL INVESTORS .................................................................................................... 439 APPENDIX IV: SUB-FUND FACTSHEETS ................................................................................................................................... 440 APPENDIX V: VARIOUS UNIT CLASSES FOR INSTITUTIONAL INVESTORS AND RESPECTIVE FEES. .................... 526

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Definitions Unless otherwise stated in this Prospectus or in a Sub-fund factsheet, the following terms are defined as specified here below: Shares and other equity-related securities

Shares and other equity-related securities, including, but not limited to, ordinary or preferred shares, financial instruments enabling an exposures to such shares as participatory notes (P-Notes), and such certificates of deposit as American depositary receipts (ADRs) and global depositary receipts (GDRs).

Other UCI Undertakings for collective investment solely aimed at collective investment in transferable securities and/or other liquid financial assets from capital raised from the public in accordance with the risk-sharing principle and whose units/shares are, upon request by their holders, redeemed directly or indirectly out of the assets of said UCI, provided that measures taken to ensure that the stock value of said units/shares is not subject to major variations being considered as equivalent to said redemption.

Mainland China PRC, excluding Hong Kong, Macau and Taiwan.

Total return swap contracts or TRSs.

Derivative contracts under article 2, paragraph 7), of regulation (EU) no. 648/2012, whereby a counterparty assigns the global financial performance of a reference bond, including interest income and compensation, capital gains and losses resulting from price fluctuations, and loan losses, to another counterparty.

Base currency Base currency of the Sub-fund in question, as indicated in the Sub-fund factsheet.

Reference currency Reference currency of the Unit class in question, as indicated in the Sub-fund factsheet.

Cash or Liquid assets Cash deposited in a bank account and term deposits.

ETC or Exchange Traded Commodity

Security tracking the performance of commodities, of commodity futures or a commodity index and listed and traded on a stock exchange.

ETF or Exchange Traded Fund

Fund tracking the performance of an underlying index and whose units are listed and traded on a stock exchange.

ETN or Exchange Traded Note

Debt security listed and traded on a stock exchange tracking the performance of an underlying reference index.

Money market instruments Money market instruments under the Law of 2010, that are liquid and usually traded on the money market, whose value may be determined accurately at any time.

Insurance-Linked Securities or ILS

These instruments are issued by insurances and/or reinsurances, as well as by any other risk aggregator, like for instance the dedicated SPV, which qualify as transferable securities according to articles 1(34) and 41(1) of the 2010 Law and Grand Ducal Regulation dated 8 February 2008, and listed or traded on the stock exchange or on any other regulated market, which operates regularly and is recognised and open to the public. The main ILS investment instrument is represented by Cat Bond. They are mostly floating-rate securities whose performance is linked to the occurrence of a catastrophic natural event or one caused by humans, even indirectly.

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Damage-type Cat Bonds cover the exposure to events such as hurricanes, earthquakes, storms, floods, hail, etc. Life-type Cat Bonds normally regard the events linked to human life, such as mortality, longevity, policy holder behaviour, etc.

Investment grade Securities with a minimal BBB- rating or equivalent credit rating awarded by rating agencies or deemed of equivalent quality by the manager based on similar credit standards at the time of the investment.

Contingent convertible bonds or CoCo bonds

Debt securities issued by financial institutions, which, in the event that a predetermined trigger event in the contract occurs, (i) are converted into shares at a predetermined price or (ii) whose value is reduced or amortised according to specific conditions of the security in question. For the purposes of this Prospectus, contingent convertible bonds do not fall within the category of hybrid bonds.

Additional tier 1 CoCo bonds Deeply subordinated securities issued by banks in order to comply with the capitalisation requirements imposed by regulators. They contribute to the “AT1” layer of a bank's capital structure, immediately above the Core Equity Bucket. Their principal characteristics include: 1) entirely discretionary and non-cumulative coupons (i.e. they may be cancelled in the event of low liquidity and low levels of available reserves), 2) perpetual structure with intermediate calls (minimum of 5 years after issue), without any increase in the coupon in the event that no calls are made (no incentive to call), 3) capacity to absorb losses: in the event of a significant fall in the bank’s capitalisation, they automatically trigger the conversion of the bond into equity capital (hence the name “Contingent Conversion”).

Hybrid bonds Subordinated debt securities that combine the characteristics of debt and equity investment securities. Hybrid bonds generally have a final long-term maturity (or no maturity limit) and a call schedule (i.e. a series of purchase dates at which the issuer can redeem the bond at specific prices). Coupon payments on certain hybrid bonds may be deferred and, on others, may be fully discretionary and may be cancelled by the issuer at any time, for any reason and for any term. The cancellation of coupon payments on these bonds does not qualify as a default.

Subordinated bonds Debt securities which, if the issuer becomes insolvent, are not repaid until after the senior debt securities have been repaid.

OECD Organisation for Economic Co-Operation and Development.

UCITS Undertakings for Collective Investment in Transferable Securities, as established by the Directive 2009/65/EC co-ordinating the legislative, regulatory and administrative provisions relating to Undertakings for Collective Investment in Transferable Securities, as amended.

Emerging countries Any country falling under the MSCI Emerging Markets index or a composite index derived therefrom (on any replacing index, as the case may be) or any country classified as weak to intermediate return (upper tier) by the World Bank.

OECD Country OECD member countries.

QFII Qualified Foreign Institutional Investor, as defined under the law and regulations that established the QFII regime aimed at qualified foreign institutional investors in the PRC.

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PRC People’s Republic of China

Asset-Backed Securities or ABS

Asset-backed debt securities such as bank card credit, student loans, car loans, bank card credit receivables, home equity loans or any other debt or loan other than mortgage loans.

(Mortgage-Backed Securities) or MBS

Commercial or private mortgage-backed debt securities.

Debt securities All kinds of debt securities, including, but not limited to, convertible or not convertible bonds issued by companies and/or governments, fixed- or variable-rate bonds, zero-coupon bonds and discount bonds, unsecured bonds, certificates of deposit, notes and treasury certificates.

Defaulted Securities Debt securities issued by companies and/or governments which are not in a position to reimburse interest and principal.

Distressed Securities Debt securities issued by companies and/or governments which have been awarded a credit rating equal to or lower than CCC+ or any equivalent credit rating awarded by rating agencies.

Sub-Investment Grade Securities awarded a credit rating lower than investment grade.

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AZ Fund 1 Management Company AZ Fund Management S.A. 35, avenue Monterey L-2163 Luxembourg Grand Duchy of Luxembourg

Company Board of Directors Chairman of the Board of Directors Alessandro Zambotti, Financial Manager of Azimut Holding SpA and member of the Board of Directors of AZ Fund Management S.A., of AZ International Holdings SA, of Azimut Holding SpA, of CGM Italia SGR S.p.A., Azimut Libera Impresa SGR S.p.A., of CGM Azimut Monaco S.A.M. and Vice-President of Azimut Capital Management SGR S.p.A. Members of the Board of Directors Giorgio Medda Chief Executive Officer of AZ Fund Management S.A., member of the Board of Directors of AZ International Holdings S.A., member of the Board of Directors of Azimut Portfoy A.S., member of the Board of Directors of Azimut (DIFC) Limited, member of the Board of Directors of AZIMUT Holding S.p.A. Mr. Claudio Basso, Senior Fund Manager and Chief Investment Officer of AZ Fund Management S.A. [Inc.], member of the Board of Directors of AZ International Holdings S.A., of Katarsis Capital Advisors S.A., of CGM Azimut Monaco S.A.M. [Inc. in Monaco] and AZ Life Dac Ramon Spano, Senior Fund Manager of AZ Fund Management S.A. Marco Vironda, Fund Manager of AZ Fund Management S.A. Giuseppe Pastorelli, Portfolio Manager of AZ Fund Management S.A. Mr. Saverio Papagno, Senior Analyst of AZ Fund Management S.A. [Inc.] Mr. Davide Rallo, Legal Manager of AZ Fund Management S.A. [Inc.]

Custodian and Paying Agent BNP Paribas Securities Services, Luxembourg branch 60, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Administrative Agent BNP Paribas Securities Services, Luxembourg branch 60, avenue J.F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Registrar and Transfer Agent BNP Paribas Securities Services, Luxembourg branch 60, avenue J.F. Kennedy L-1855 Luxembourg

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Grand Duchy of Luxembourg Fund and Company Auditor Ernst & Young S.A. [Inc.] 35E, avenue John F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Main Distributor in Italy Azimut Capital Management SGR S.p.A. Via Cusani, 4 20121 Milan Italy

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1. Establishment – Legal form AZ Fund 1 (the “Fund”) is an umbrella fund established under Luxembourg law, pursuant to part I of the 2010 Law, created in accordance with fund management regulations (the “Management Regulations”) approved on 4 February 2000 by the Board of Directors of AZ Fund Management S.A. (the “Company”) and published in the Memorial Compendium of Companies and Associations (the “Memorial”) on 13 March 2000 after having been filed with the Registrar of the District Court of Luxembourg on 28 February 2000. The Management Regulations were amended on 27 April 2001, 4 December 2002, 13 February 2006, 29 May 2006, 18 July 2006, 11 December 2006, 25 January 2008, 29 February 2008, 10 September 2008, 19 January 2009, 27 April 2009, 3 February 2010, 1 March 2010, 20 August 2012 and 18 November 2014. The latest amendments were filed with the Business Register on 17 December 2014. As an umbrella fund, the Fund has no legal status. Its assets belong to its investors (joint tenancy) and are separate from those of the Company and any other fund managed. The Fund is formed by a collection of transferable securities and other financial assets belonging to its investors, managed in the sole interest of said investors by the Company according to the risk-sharing principle. The Fund assets are and shall remain separate from those of the Company and any other fund managed. There are no restrictions on the amount of assets (save that prescribed under art. 19, letter c.) or on the number of collectively owned Units which comprise the Fund’s assets. The Management Company may create new sub-funds (hereinafter the “Sub-funds”), which consist of separate asset portfolios to which a specific investment policy is applicable. The features and investment policies of each of the Sub-funds are described in the respective Sub-fund factsheets. In case new Sub-funds are created, this Prospectus shall be updated with detailed information on these new Sub-funds and the key information for the investor shall be prepared. The Company may liquidate any Sub-fund and distribute its net assets amongst its Unitholders in proportion to the Units held, as described in chapter 19.

2. Fund Targets The main target of the Sub-funds is to offer Unitholders the possibility to engage in the professional management of a portfolio of transferable securities and other liquid financial assets. The target of the managers of each Sub-fund is to maximise total investment returns while offering an optimal risk/return ratio. This target shall be achieved by means of active management which takes into account the criteria of liquidity, risk-sharing and quality of investments. The Fund may use derivative financial instruments as described in detail in the “Derivative Financial Instruments” section of chapter 3. "Investment policy and restrictions" and in the factsheet of every Sub-fund. The Company shall take any risks deemed necessary to meet the established targets; it may not, however, guarantee that it will succeed in reaching these targets in view of stock market fluctuations and other risks involved with investment in transferable securities. Investment policy of each Sub-fund is specified in a specific Sub-fund factsheet.

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3. Investment policy and restrictions In this section, every Sub-fund is considered as a separate undertaking for collective investment in transferable securities. The regulations and restrictions described below apply to all Sub-funds of the Fund:

I. General provisions

The Fund must respect the criteria and restrictions described below for each of its Sub-funds:

1) The Fund invests exclusively in:

a) transferable securities and money market instruments listed or traded on regulated markets;

b) transferable securities and money market instruments traded on another regulated market in an EU Member State which operates regularly and is recognised and open to the public;

c) transferable securities and money market instruments listed on the stock exchange of a country outside the European Union or traded on another regulated market of a non-European Union state which operates regularly and is recognised and open to the public: i.e., the stock exchange or other regulated market of any state of the Americas, Europe, Africa, Asia and Oceania;

d) newly issued transferable securities and money market instruments, provided that: - the issue methods include a guarantee to apply for official listing on a stock exchange or on another

regulated market which operates regularly and is recognised and open to the public, i.e. a stock exchange or other regulated market of any state of the Americas, Europe, Africa, Asia and Oceania;

- listing is secured within one year of issue at the latest;

e) units of UCITS authorised according to Directive 2009/65/EC and/or of other UCIs pursuant to Article 1, paragraph (2) paragraphs a) and b) of Directive 2009/65/EC, regardless of whether they are situated in a Member State of the European Union or not, provided that: - such other UCIs are authorised under laws which provide for them to be subject to supervision

considered by the supervisory authority, the Commission de Surveillance du Secteur Financier (“CSSF”) [Financial Sector Supervisory Commission] to be equivalent to that established by EU law, and that cooperation between authorities is sufficiently ensured;

- the level of protection for unitholders of the other UCIs is equivalent to that provided for unitholders in a UCITS, and, in particular, that the rules on asset allocation, borrowing, lending, short selling of transferable securities and money market instruments are in line with the requirements of Directive 2009/65/EC;

- the assets of the other UCIs are reported in the interim and annual reports to enable an assessment of the assets and liabilities, income and operations over the reporting period;

- no more than 10% of the total assets of the UCITS or the other UCIs the sub-fund is going to invest in may be fully invested in units of other UCITS or UCIs, in accordance with their respective regulations.

Sub-funds qualifying as Feeder UCITS must invest at least 85% of their assets in another UCITS or a Sub-fund of an UCITS, pursuant to the requirements provided by Luxembourg law and regulations and as defined in the Prospectus. If it qualifies as Feeder UCITS, a Sub-fund can invest up to 15% of its assets in one or more of the following instruments: liquid assets (to a limited extent), pursuant to article 41(2) paragraph 2 of the 2010 Law, and financial instruments which may be used only for hedging purposes in accordance with the relevant

provisions of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law. In this case the Investors will be notified in advance and related information will be made available to the concerned Investors.

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f) deposits with credit institutions which are repayable on demand or can be withdrawn, and maturing in no more than twelve months, provided that the credit institution has its registered office in a Member State of the European Union or, if the registered office of the credit institution is situated in a non-Member State, it is subject to prudential rules considered by the CSSF as equivalent to those established by EU law;

g) derivative financial instruments, including equivalent cash-settled instruments, traded on a regulated market as referred to in sub-paragraphs a), b) and c) above; and/or derivative financial instruments traded over-the-counter (“OTC derivatives”), provided that: - the underlying assets consist of instruments referred to in paragraph 1) from a) to f), financial indexes,

interest rates, foreign exchange rates or currencies, in which every Sub-fund may invest according to its investment objectives;

- the counterparties to OTC derivative transactions are institutions subject to prudential supervision, and belonging to the categories approved by the CSSF; and

- the OTC derivatives are subject to reliable and verifiable valuation on a daily basis and can be sold, liquidated or closed by an offsetting transaction at any time at their fair value upon the Company’s initiative;

h) money market instruments other than those traded on a regulated market if the issue or issuer of such instruments is itself regulated for the purpose of protecting investors and savings, and provided that they are: - issued or guaranteed by a central, regional or local authority or central bank of an EU Member State,

the European Central Bank, the European Union or the European Investment Bank, a non-Member State or, in the case of a Federal State, by one of the members making up the federation, or by a public international body to which one or more EU Member States belong, or

- issued by a company whose securities are traded on regulated markets as referred to in sub-paragraphs a), b) and c) above, or

- issued or guaranteed by an institution subject to prudential supervision, in accordance with criteria defined by EU law, or by an institution which is subject to and complies with prudential rules considered by the CSSF to be at least as stringent as those established by EU Law, or

- issued by other entities belonging to the categories approved by the CSSF provided that investments in such instruments are subject to investor protection equivalent to that established in the first, second or third paragraphs above and provided that the issuer is a company whose capital and reserves amount to at least EUR 10,000,000 (ten million) and which prepares and publishes its annual reports in accordance with the fourth directive 2013/34/EU, or is an entity which, within a group of companies which includes one or several listed companies, is dedicated to the financing of the group or is an entity which is dedicated to the financing of securitisation vehicles which have been granted a bank credit line.

2) However, the Fund may invest no more than 10% of the net assets of any Sub-fund in transferable securities and money market instruments other than those referred to in paragraph 1) above.

3) The Fund may not acquire real property.

4) The Fund may not acquire either precious metals or certificates representing them for any sub-fund.

5) Any Sub-fund of the Fund may hold ancillary liquid assets. However, the Company reserves the right, in the event of unfavourable market conditions or based on investment opportunities, to hold a significant amount of liquidity, within each Sub-fund.

6) (a) The Fund may invest no more than 10% of the net assets of any sub-fund in transferable securities or money market instruments issued by the same entity. No Sub-fund may invest more than 20% of its net assets in deposits made with the same body. The counterparty risk of the Company in an OTC derivative transaction may not exceed 10% of its assets when the counterparty is a credit institution referred to in paragraph 1) f) above, or 5% of its net assets in other cases.

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(b) Moreover, in addition to the restriction described in paragraph 6) (a), the total value of the transferable securities and money market instruments held by each sub-fund in the issuers in each of which it invests more than 5% of its net assets must not exceed 40% of the value of its net assets. This limitation does not apply to deposits made with financial institutions subject to prudential supervision or to OTC derivatives with such institutions. Despite the individual restrictions established in paragraph 6) (a), no Sub-fund shall combine: - investments in transferable securities and money market instruments issued by a single body, - deposits made with a single body, and/or - exposures arising from OTC derivative transactions undertaken with a single body in excess of 20% of its net assets.

(c) The limit of 10% set forth in paragraph 6) (a), first sentence, is raised to a maximum of 35% if the transferable securities or money market instruments are issued or guaranteed by a Member State of the European Union, by its local authorities, by a non-Member European State or by any state of North America, South America, Asia, Africa or Oceania or by public international organisations of which one or more EU Member States are members.

(d) The 10% limit set forth in paragraph 6) (a), first sentence, is raised to a maximum of 25% for certain debt securities if they are issued by a credit institution with registered office in a Member State of the European Union and which is subject, by law, to special public supervision designed to protect bondholders. In particular, sums deriving from the issue of such debt securities must be invested pursuant to the law in assets which, during the entire period of validity of such debt securities, are capable of covering loans deriving from the debt securities and which, in the event of bankruptcy of the issuer, would be used on a priority basis for the reimbursement of principal and payment of the accrued interest. When the Fund invests more than 5% of the net assets of each Sub-fund in the debt securities mentioned in this paragraph, issued by one issuer, the total value of these investments may not exceed 80% of the net asset value of each of the Fund’s Sub-funds.

In accordance with the conditions defined by Luxembourg law and regulations, the Fund's Sub-funds may qualify as feeder UCITS (the "Feeder") or as master UCITS (the "Master"). A Feeder shall invest at least 85% of its net assets in securities of the same Master UCITS or sub-fund of an UCITS. An existing sub-fund can be converted into feeder or master according to the provisions of Luxembourg law and regulations. An existing Master or Feeder can be converted into a standard sub-fund which is neither a Feeder UCITS nor a Master UCITS. A feeder can replace the Master UCITS with another Master UCITS. If it qualifies as Feeder, this shall be specified in the Sub-fund description.

(e) The transferable securities and money market instruments referred to in paragraphs (c) and (d) are not taken into account for the purpose of applying the limit of 40% referred to in paragraph (b). The limits set out in paragraphs (a), (b), (c) and (d) may not be combined; thus investments in transferable securities or money market instruments issued by the same entity, in deposits or derivative instruments made with this issuer, carried out in accordance with paragraphs (a), (b), (c) and (d), shall under no circumstances exceed in total 35% of the net assets of each of the Fund’s sub-funds.

Companies which are included in the same group for the purposes of consolidated accounts, as defined in Directive 2013/34/EU or in accordance with recognised international accounting standards, are regarded as a single entity for the purpose of calculating the limits contained in paragraph 6).

Each sub-fund may invest a total of up to 20% of its net assets in transferable securities and money market instruments within the same group. PURSUANT TO ARTICLE 44 OF THE 2010 LAW, THE SUB-FUNDS ARE AUTHORISED TO INVEST UP TO 20% OF THEIR NET ASSETS IN SHARES AND/OR DEBT SECURITIES ISSUED BY THE SAME ENTITY, WHEN THE AIM OF THE SUB-FUND’S INVESTMENT POLICY IS TO REPLICATE THE COMPOSITION OF A SPECIFIC SHARE OR BOND INDEX RECOGNISED BY THE CSSF, BASED ON THE FOLLOWING: - THE COMPOSITION OF THE INDEX IS SUFFICIENTLY DIVERSIFIED; - THE INDEX REPRESENTS AN ADEQUATE BENCHMARK FOR THE MARKET TO WHICH IT

REFERS;

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- IT IS PUBLISHED IN AN APPROPRIATE MANNER. THE 20% LIMIT MAY BE RAISED TO 35% FOR JUST ONE ISSUER, WHERE THAT PROVES TO BE JUSTIFIED BY EXCEPTIONAL CONDITIONS IN REGULATED MARKETS WHERE CERTAIN TRANSFERABLE SECURITIES OR MONEY MARKET INSTRUMENTS ARE HIGHLY DOMINANT.

MOREOVER, PURSUANT TO ARTICLE 45 OF THE 2010 LAW, THE FUND IS AUTHORISED TO INVEST UP TO 100% OF THE NET ASSETS OF EACH SUB-FUND IN TRANSFERABLE SECURITIES AND MONEY MARKET INSTRUMENTS ISSUED OR GUARANTEED BY A EUROPEAN UNION MEMBER STATE, ITS LOCAL AUTHORITIES, AN OECD MEMBER STATE, BY BRAZIL OR PUBLIC INTERNATIONAL BODIES OF WHICH ONE OR MORE MEMBER STATES OF THE EUROPEAN UNION ARE MEMBERS, PROVIDED THAT EACH SUB-FUND HOLDS SECURITIES ASSOCIATED WITH AT LEAST SIX SEPARATE ISSUES AND THAT THE SECURITIES ASSOCIATED WITH ONE SINGLE ISSUE DO NOT EXCEED 30% OF THE TOTAL NET ASSET VALUE OF SAID SUB-FUND.

7) (a) The Fund may invest in units of UCITS and/or of other UCIs as described in paragraph 1) e), provided that no sub-fund invests more than 20% of its net assets in a single UCITS or other UCI. For the purposes of applying this investment limit, each sub-fund of an umbrella UCI shall be considered as a separate issuer, provided that the principle of segregation of liabilities of the various sub-funds is ensured in relation to third parties.

(b) Investments made in units of UCIs other than UCITS may not exceed, on aggregate, 30% of the net assets of a sub-fund. When the Fund has acquired units of UCITS and/or of other UCIs, the assets of the respective UCITS or other UCIs are not combined for the purposes of the limits described in paragraph 6) above. (c) When the Fund invests in UCITS and/or other UCIs managed directly or under discretionary management by the same company or by any other fund management company to which the Company is associated by means of joint management or control or via direct or indirect equity investment of significant size, the Fund shall not bear any subscription or repurchase costs on its investments in other UCITS and/or other UCIs. The Fund’s annual report will include the maximum percentage of management fees borne for each Sub-fund and for UCITS and/or other UCIs in which each Sub-fund invests during the reporting period.

8) a) The Company may not acquire, on behalf of the Fund, any shares carrying voting rights which would enable it to exercise significant influence over the management of an issuer; b) Moreover, the Fund may acquire no more than:

(i) 10% of the non-voting shares of the same issuer; (ii) 10% of the bonds of the same issuer; (iii) 25% of the units of the same UCITS and/or other UCI; (iv) 10% money market instruments issued by the same issuer.

The limits set out in paragraphs (ii), (iii) and (iv) may be disregarded at the time of acquisition if the gross amount of bonds or money market instruments or the net amount of the securities issued cannot be calculated at that time. c) Paragraphs a) and b) are waived as regards:

- transferable securities and money market instruments issued or guaranteed by a Member State of the European Union or its local authorities;

- transferable securities and money market instruments issued or guaranteed by a non-Member State of the European Union or by a state of North America, South America, Asia, Africa or Oceania;

- transferable securities and money market instruments issued by public international bodies of which one or more Member States of the European Union are members;

- shares held by the Fund in the capital of a company incorporated in a non-Member State of the European Union that invests its assets mainly in the securities issued by entities of this state whereby, pursuant to local legislation, such a holding represents the only way in which the Fund can invest in the securities of issuing bodies of that State. However, this limit applies only provided that the company of the non-European Union state complies with the investment restrictions described herein.

9) The Fund need not necessarily comply with: a) the limits set out above when exercising subscription rights attached to transferable securities or

money market instruments which form part of its assets;

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b) while ensuring observance of the risk-sharing principle, the Fund may derogate from the investment restrictions outlined in paragraphs 6) and 7) for a period of six months following the date of sub-fund launch authorisation;

c) the limits referred to in paragraphs 6) and 7) are applied upon purchase of transferable securities or money market instruments; in the event that these limits are exceeded for reasons beyond the control of the Company or as a result of the exercise of subscription rights, the Company’s main priority for its sales transactions must be to settle that situation, taking due account of the interests of Fund investors.

10) A Sub-fund of the Fund can subscribe for, acquire and/or hold securities to be issued or issued by one or more other Sub-funds of the Fund provided that:

a) the target Sub-fund does not invest in turn in the sub-fund that has invested in this target Sub-fund; and b) the part of assets that the target Sub-funds being acquired may invest overall, pursuant to the

management regulations, in units of other target Sub-funds of the Fund does not exceed 10%; and c) any voting right possibly attached to the mentioned securities is suspended as long as they are held by

the said Sub-fund and provided that it is duly specified in the accounting books and financial reports; and

d) in any case, as long as said securities are held by the Sub-fund their value shall not be considered in the calculation of the Fund's net assets for the purpose of checking the minimum threshold of net assets provided by the 2010 Law; and

e) there is no double withdrawal of management/subscription or redemption fees which are levied for the sub-fund investing in the target sub-fund as well as for the target sub-fund.

11) The Fund may not borrow capital, for any of its sub-funds, with the exception of: a) acquiring foreign currency by means of a back-to-back loan; b) borrowings accounting for up to 10% of the net assets of any sub-fund, provided that these are

temporary loans;

12) The Fund may not grant loans or act as a guarantor on behalf of third parties. This shall not prevent the Fund from acquiring transferable securities, money market instruments or other financial instruments referred to in paragraph 1) e), g) and h) which are not fully paid.

13) The Fund may not perform short sales of transferable securities, money market instruments or other financial instruments referred to in paragraph 1) e), g) and h).

14) The risk management method used by the Company will enable it to control and measure the risk attached to positions at any time as well as their contribution to the overall risk profile of the portfolio of each sub-fund of the Fund and Company will use a method that allows for precise and independent assessment of the value of OTC derivatives and, according to the detailed regulations established by the CSSF, will periodically disclose the various types of derivative instruments, underlying risks, quantitative restrictions and methods chosen to assess the risks attached to derivative instrument transactions.

15) The Company will ensure that the overall risk attached to the derivative instruments of each sub-fund of the Fund does not exceed the total net value of its portfolio, that the overall risk attached to the use of derivative financial instruments may not exceed 100% of the net asset value and that the overall risk assumed by any sub-fund may not exceed 200% of the net asset value for a long time, unless otherwise stated in paragraph 11) b). The risks are calculated by including the current value of the underlying assets, counterparty risk, expected market trends and time available to liquidate positions. For the purposes of its investment policy and within the limits established in paragraph 6) (e) above, each Sub-fund may invest in derivative financial instruments provided that, on aggregate, the risks to which the underlying assets are exposed do not exceed the investment limits described in paragraph 6). When a Sub-fund invests in derivative financial instruments based on an index, these investments are not necessarily combined with the limits established in paragraph 6) above. When a transferable security or money market instrument is in the form of a derivative instrument, this must be taken into consideration upon application of the provisions described in paragraph 15).

16) The financial indexes to which the Sub-funds are exposed qualify as eligible financial indexes within the meaning of the 2010 Law, the Grand-Ducal Regulation of February 8. 2008 and CSSF Circular 14/592. The composition of financial indexes is generally reviewed and rebalanced on a weekly, monthly, quarterly

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or semi-annual basis. Unless otherwise provided in a Sub-fund’s factsheet, the frequency of rebalancing will have no cost impact on the achievement of the relevant Sub-fund's investment objective.

17) As for the method for calculating the overall risk and expected leverage, all sub-funds rely on the absolute VaR approach. The expected leverage of every sub-fund is specified in the sub-fund factsheets and will be calculated according to the total of all derivative instruments' notional amounts. Investors should note that there is a possibility of higher leverage levels under certain exceptional circumstances and on a temporary basis, especially when the market situation varies considerably, e.g. in case of extreme upward or downward market shifts.

II. Provisions relating to instruments and techniques and the use of derivative financial instruments Efficient portfolio management techniques and instruments The Fund does not engage in securities financing transactions (i.e., repo/reverse repo transactions, securities lending and securities borrowing, buy-sell or sell-buy transactions, lending transactions with margin call), as referred to in Regulation (EU) 2015/2365 on the transparency of securities financing transactions and reuse and amending Regulation (EU) 648/2012 ("SFTR"). Should the Board decide to provide this opportunity, the Prospectus will be updated prior to the effective date of such decision to ensure that the Fund complies with the disclosure requirements of SFTR. Derivative Financial Instruments The Fund may invest in derivative financial instruments, on the conditions and to the extent established by the Law of 2010 and the applicable regulations, circulars and CSSF positions. Within the framework of its investment policy and target, and within the limits set in this chapter, each of the Sub-funds may invest in derivative financial instruments for hedging against certain types of risks such as, for example, the market risk, foreign exchange risk, interest rate risk, as well as credit, volatility and inflation risks. As for Sub-funds using derivative financial instruments for investment purposes, this is mentioned in their investment targets and policies. The main financial derivative instruments which may be used in all Sub-funds based on their investment targets and policies include futures, options, warrants, forward foreign exchange contracts, credit linked notes and contracts for difference (CFD). Financial instruments such as total return swaps, credit default swaps, commodity index swaps, volatility or variance swaps, as well as structured derivative financial instruments are used if mentioned in the investment targets and policies of the Sub-funds.

1. Investment in options on transferable securities and money market instruments The Fund may buy or sell both call or put options, provided that the options are traded on a regulated market that operates regularly, is recognised and is open to the public. When engaging in any of the above-mentioned transactions, each Sub-fund is obliged to observe the following: 1.1. Regulations applicable to option purchases The premium amount paid for call and put options referred to in this paragraph may not, together with the premium amount paid for call and put options as referred to in paragraph 2.3, exceed 15% of the Sub-fund’s total net assets. 1.2. Regulations applicable to ensure coverage of commitments related to option transactions Upon execution of sales of call options, the Fund shall hold underlying securities or equivalent call options or other instruments aimed at guaranteeing adequate hedging of commitments arising from the contracts in question, such as warrants. Securities underlying call options sold may not be realised for as long as the said option exists, unless the options are covered by opposing options or other instruments

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that may be used for the same purpose. Similarly, the Fund shall hold equivalent call options or other instruments in the event that it does not hold underlying securities upon sale of the relative options. Notwithstanding this principle, the Fund may sell call options relating to stocks not held at the time the option agreement is executed if certain conditions are met:

- the strike price of the call options thus sold may not exceed 25% of the Sub-fund’s net assets; - the Fund must be able to hedge the positions acquired for any Sub-fund at all times.

When selling put options, the Fund must be hedged for the entire duration of the option contract by liquidity, which it may need to pay allotted securities in the event that the counterparty exercises the options. 1.3. Conditions and restrictions on sale of call options and put options The sum of the commitments deriving from the sale of call and put options (with the exception of the sale of call options for which the Sub-fund in question is adequately hedged) and the sum of the commitments arising from transactions described in 2.3 below may not exceed the total value of the Sub-funds’ assets at any time. In this case, commitments on call option and put option contracts sold are equal to the total of the strike price of the options.

2. Futures and options

With the exception of forward contracts as described in paragraph 2.2, the transactions examined may involve contracts traded on regulated markets that operate regularly, are recognised and open to the public. Provided that the following conditions are met, these transactions may be performed for the purpose of hedging and other purposes. 2.1. Hedging against stock market performance risks In order to hedge the risk of negative stock market trends, the Fund may, for each Sub-fund, sell futures contracts on stock market indexes. For the same purpose, it may also sell call options or buy put options on stock market indexes. In order to hedge the aforementioned transactions, there must be a strict correlation between the composition of the index chosen and that of the corresponding equity portfolio. In theory, the total commitments deriving from futures contracts and options contracts on stock market indexes shall not exceed the total value of securities held by the Fund in the market corresponding to the index. 2.2. Hedging against interest rate risks In order to hedge against interest rate risks, the Fund may, in any Sub-fund, sell interest rate futures contracts. For the same purpose, the Fund may also sell interest rate call options or purchase interest rate put options, or engage in interest rate swaps with primary financial institutions specialised in this type of transaction. In theory, the total commitments deriving from futures contracts, options and interest rate swaps shall not exceed the total value of the assets to be hedged held by the Sub-fund in the currency corresponding to the contracts in question. 2.3. Non-hedging transactions With the exception of transferable securities and money market instrument options and currency contracts, the Fund may, for purposes other than hedging, buy or sell futures and options contracts attached to all types of financial instruments, provided that the sum of the commitments deriving from these buy or sell transactions added to the sum of the commitments deriving from the sale of call and put options on transferable securities and money market instruments shall not exceed the value of the assets of the Sub-fund in question at any given time. The sale of call options on transferable securities and money market instruments for which the Fund is adequately hedged are not included in the calculation of the sum of the commitments described above. Commitments deriving from transactions that do not involve options attached to transferable securities and money market instruments are defined as follows: - commitments deriving from futures contracts are in line with the liquidation value of the net investments in

identical financial instrument contracts (after offsetting buy or sell positions), without considering the respective maturity dates, and

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- commitments deriving from option contracts bought and sold are in line with the sum of the strike prices of the options comprising the net sell positions based on the same underlying asset, without considering the respective maturity dates.

It should be noted that the sum of the premium amount paid to buy call and put options on transferable securities and money market instruments described in paragraph 1.1 shall not exceed, in addition to the sum of the premium amount paid to buy call and put options on transferable securities and money market instruments, 15% of the net assets of the Sub-fund in question.

3. Transactions affecting derivative financial instruments for hedging against exchange rate risk

In order to protect its assets against exchange rate fluctuations, the Fund may sell currency futures and sell currency call options or buy currency put options. These transactions only involve contracts traded on regulated markets that operate regularly, are recognised and open to the public. Meanwhile, the Fund may also engage transactions involving currency forward and futures and currency swap transactions with leading financial institutions specialised in this type of transaction. The aim of hedging the above transactions depends on the strict relation between them and the assets to be hedged; this implies that the transactions performed in a certain currency may not in theory exceed (in terms of volume) the estimated value of all the assets denominated in this currency, nor their expected holding period. For the various types of transactions, the Fund must indicate in the financial reports the total amount of commitments deriving from transactions in place on the reporting date.

4. Total return swap contracts

The Fund can enter into total return swap contracts or other derivative financial instruments having the same characteristics, as covered by SFTR, for the purposes set out in chapter 2. "Fund Objectives" and specified below. The Fund may use total return swap contracts in order to realise investment gains, reduce risks or manage the Fund more efficiently. When the Fund uses total return swap contracts, the underlying assets include instruments in which the Fund may invest in accordance with its investment target and policy. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only " or "long/short " strategies on financial indices, unless otherwise specified in a Sub-fund's factsheet. The Fund can use total return swap contracts only as a residual exposure, unless otherwise provided by a Sub-fund factsheet. The gross exposure to the total return swap contracts will not exceed 10% of the net asset value of a Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 10% of the net asset value, unless otherwise specified in a Sub-fund's factsheet. The exposure to total return swap contracts is calculated on the basis of the sum of the notional amounts. Total return swap contracts may be in the form of funded and/or unfunded swaps. An unfunded swap means a swap where no upfront payment is made by the total return receiver at inception. A funded swap means a swap where the total return receiver pays an upfront amount in return for the total return of the reference asset and can therefore be costlier due to the upfront payment requirement. Said counterparties will have no decision-making power on the Sub-fund portfolio composition or management or on the derivative financial instruments underlying assets. Operations will be entered into with counterparties having a low risk profile. Assets under total return swap contracts will be held by the Custodian or its delegates (sub-custodians). Selection of counterparties for total return swap contracts Counterparty selection shall be a best selection procedure. The Company shall enter into transactions with counterparties having a good solvency, as judged by the Company.

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The counterparties shall comply with prudential supervision rules considered by the CSSF to be equivalent to those established by EU Law. The counterparties will be first class financial institutions specialising in this type of transaction, based in EU or OECD member countries having (directly or at the level of the parent company) a credit rating of "investment grade" according to an internationally renowned rating agency. The legal form of the counterparties is not a decisive criterion.

Management of financial guarantees related to OTC derivative financial instrument transactions. At the date of this Prospectus, the Fund will not accept collaterals other than cash (denominated in euros and/or US dollars). The financial guarantees received in cash must be: - Invested in high-rated government bonds; - Placed on deposit with credit institutions which have their head office in an EU member state or which are

subject to prudential rules considered by the CSSF as equivalent to those provided for by EU legislation; - Used for repurchase transactions, provided that said transactions are entered into with credit institutions

subject to prudential supervision and that the Company on behalf of the Fund can recall at any time the total amount of liquid assets, considering the accrued interest;

- Invested in short-term monetary UCIs. Investors should be aware that financial guarantees received in cash, when invested in accordance with the provisions above, can lose value according to the fluctuations of the market. This drop of value may result in a total loss of the guarantees thus reinvested and have a negative impact on the performance of the Sub-fund. The valuation of received financial guarantees must be performed daily. The guarantees must be executable at any time and with no previous notice to the counterparty. In case of transfer of ownership, the collaterals received will be retained by the Custodian or its delegates (sub-custodians). For any other collateral arrangement, collaterals may be held at a third-party custodian bank that is subject to prudential supervision and that is unrelated to the counterparty that provided the collateral. Haircut policy The policy takes into account numerous factors based on the nature of the received guarantees. The Fund applies the following haircut rates to eligible assets received as guarantee: Guarantee Haircut rate Cash EUR 0% Cash USD 0% Reinvestment policy The financial guarantees other than cash ones received for OTC derivative financial instruments cannot be transferred, reinvested or given as collateral. For the moment, the Fund will not accept financial guarantees other than cash. The financial guarantees received in cash for OTC derivative financial instruments can only be: (i) deposited at entities as above specified; (ii) invested in high-rating government bonds; (iii) used for reverse repo transactions, provided that said transactions are entered into with credit institutions

subject to prudential supervision and that the Sub-fund can recall at any time the total amount of liquid assets, considering the accrued interest;

(iv) invested in short-term money market funds.

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The reinvested cash financial guarantees must be sufficiently diversified in terms of country, market and issuer. The criteria for sufficient diversification of issuer concentration is considered as fulfilled if the Sub-fund receives from a counterparty a basket of financial guarantees characterised by a maximum exposure of 20% of its net asset value to a specific issuer. If the Sub-fund is exposed to several counterparties, the different baskets of financial guarantees must be combined for the purpose of calculating the 20% limit of exposure to a single issuer. Following reinvestment of collaterals received in cash, all risks associated with a normal investment will apply. Policy on management of direct or indirect costs/fees linked with the use of total return swap contracts A sub-fund may incur costs and fees associated with total return swap contracts. In particular, the Fund may pay fees to agents and other intermediaries who may be affiliated with the custodian bank, the investment manager or the Company as compensation for the functions and risks they take. The amount of these fees may be fixed or variable. All income from the total return swap contracts, net of direct and indirect operating costs and expenses, will be paid to the relevant sub-fund. The following information will be disclosed in the Fund annual report: a) the exposure of each sub-fund obtained through total return swap contracts; b) the identity of the counterparties for total return swap contracts; c) the link of these counterparties with the Company or the Custodian; d) the type and extent of guarantees received by the Sub-funds to decrease exposure to counterparty risk; e) the revenues deriving from total return swap contracts for the whole period, with the direct and indirect

operational costs and fees borne; f) and any other information required by SFTR.

III. Risk Factors Making an equity investment in a Sub-fund involves risks associated with possible changes in the value of the units, reflecting changes in the value of financial instruments in which the resources of the Sub-fund are invested. On this subject, it is worth to distinguish between the risks involved in investing in shares and the risks involved in investments in fixed-income securities (bonds). In general, shares are more risky than fixed-income securities. The higher risk for share holders is explained by the fact that they directly participate in the economic risk of the company; in particular, the holders take the risk of not being remunerated for their equity investment. The scenario changes for holders of fixed-income securities, who finance the issuer company with the resulting interest receivable and the repayment of their invested capital at maturity. The higher risk is the issuer solvency. No matter the class of securities, the following risks must be considered: 1) Risks linked to change in security value

The change in security value is strictly linked to the peculiar characteristics of the issuer (financial standing, economical expectations within its sector), and the reference markets trend. For shares, the change in value is determined by the evolution of reference transferable securities markets; for fixed-income securities, the change in value is affected by the evolution of interest rates on money and financial markets.

2) Risks linked to securities' liquidity

Securities liquidity depends on the characteristics of the market on which they are traded. In general, the securities traded on regulated markets are more liquid and, as such, involve less risks as they are more easily convertible.

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It should also be noticed that the fact that a security is not listed on a stock exchange makes the assessment of its value more difficult since any such valuation is discretionary.

3) Risks linked to the currency in which the security is denominated

Considering the considerable exchange rate fluctuations between the Euro and other currencies, investments in financial instruments denominated in a currency other than the Euro feature higher risks than investments in the European currency. With reference to Sub-fund(s) denominated in US Dollars (USD) and considering the considerable exchange rate fluctuations between the USD and other currencies, investments in financial instruments denominated in a currency other than the USD feature higher risks than investments in the US currency. When a class closes cross-hedging operations (for instance, by using a different currency than the one in which the hedged security is denominated), the class will be exposed to the risk that the value variations of the currency used for hedging are not fully correlating with the value variations of the currency in which the securities are denominated, which could carry losses both in the hedging transaction and in the underlying securities or assets. If the interest rates or exchange rates between the reference currency and the currency used for hedging fluctuate unexpectedly, the foreseeable advantages of term contracts may not materialise or losses may be incurred, so that the category could be worse off than if such a strategy had not been followed. In addition the correlation between the fluctuation of the prices of these instruments and the prices of securities and currencies hedged or used for hedging purposes will not be perfect and may lead to unforeseen losses. Unforeseen fluctuations in currency prices may be translated into a lower global performance for that category than if it had not entered into such contracts.

4) Risks linked to emerging markets

Transactions on emerging markets make the investor take considerable additional risks, as the regulation of these markets does not provide for the same guarantees as far as protection of investors is concerned. The risks linked to the political-economic situation of the issuer's country of origin must be considered, too. In some countries there is a risk of asset expropriation, confiscation tax, political or social instability or diplomatic developments which could affect investments in those countries. Information on certain transferable securities and certain money market instruments and financial instruments may be less accessible to the public and entities may not be subject to requirements concerning auditing of accounts, accounting or recording comparable to those some investors are used to. While generally increasing in volume, some financial markets have, for the most part, substantially less volume than most developed markets and securities of many companies are less liquid and their prices are more volatile than securities of comparable companies in largest markets. In many of these countries, there are also very different levels of supervision and regulation of markets, financial institutions and issuers, in comparison to developed countries. In addition, requirements and limitations imposed in some countries to investments by foreigners may affect the performance of some sub-funds. Any change in laws or currency control measures subsequent to an investment can make the repatriation of funds more difficult. Risk of loss due to lack of adequate systems for the transfer, pricing, accounting and custody of securities may also occur. The risk of fraud related to corruption and organised crime is significant. Systems to settle transactions in emerging markets may be less well-organised than in developed countries. There is a risk that the settlement of transactions be delayed and that liquid assets or securities of the sub-funds are jeopardised because of the failure of such systems. In particular, market practice may require that payment be made before receipt of the securities purchased or that a security be delivered before the price is received. In such cases, default of a broker or bank through which the transaction was to be made will result in a loss for the sub-funds that invest in emerging countries securities.

5) Risks linked to investment in the Chinese markets

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Investing in markets of emerging countries like the People's Republic of China exposes the affected Sub-funds to a higher market risk compared to the investments in a developed country. This could be due, among other things, to a greater market volatility, a lower trading volume, political and economic instability, the risk of settlement default, greater risk of market closure and more government limits on foreign investment than those normally encountered in developed markets. Investors must be aware that for over 50 years the Chinese government has adopted a planned economy system. The Chinese government has implemented economic reforms that emphasise decentralisation and the use of market forces in the development of the Chinese economy. These reforms have resulted in significant economic growth and social progress of the country. The exchange rate used for the Sub-funds investing in Renminbi refers to the offshore Renminbi ("CNH"), not to the onshore Renminbi ("CNY"). The value of CNH may differ, perhaps significantly, from that of CNY due to a number of factors, including exchange control policies and restrictions that can be applied to the repatriation by the Chinese government, as well as other external market players. Considering these risks, the Fund management company shall take all necessary measures in order to permanently assure the global liquidity of the affected sub-funds.

Political and social risks Investments in China will be sensitive to any political, social and diplomatic evolution in China or related to China. Any change in Chinese politics may adversely affect securities markets in China, as well as the performance of the Sub-fund. Financial risk The Chinese economy differs from that of most developed countries for a number of aspects, particularly regarding government’s involvement, level of development, growth rate and foreign currency monitoring. The regulatory and legal framework of Chinese capital markets and companies is not as developed as the one found in developed countries. The Chinese economy has experienced rapid growth over the last few years. Nevertheless, this growth may or may not continue and apply uniformly to the different sectors of the country’s economy. All these factors may adversely affect the performance of the Sub-fund. Legal and regulatory risks China’s legal system is based on written laws and regulations. However, a number of said laws and regulations have not yet been put to the test and their applicability has not been clearly established yet. In particular, regulations governing foreign exchange in China are relatively new and their application is uncertain. These regulations also enable the China Securities Regulatory Commission and State Administration of Foreign Exchange to exercise their discretionary power in their interpretation of regulations, which may increase uncertainty as to their application. Tax risk Tax rules applied by the tax authorities of the People’s Republic of China (“PRC”) in this field are not clear. Given that the provision set aside by the Fund is grounded on current market practice and the Fund's understanding of tax rules, any amendment introduced to market practice or the interpretation of Chinese tax rules may affect this provision and cause the provision to be higher or lower than necessary. Consequently, investors may find themselves at an advantage or disadvantage depending on the final outcome of the capital gains tax, the provision level and the time when they subscribed and/or redeemed their shares within the Sub-fund. Chinese class A shares market Chinese class A shares are listed and traded on national stock exchanges in Mainland China, namely the Shanghai Stock Exchange and the Shenzhen Stock Exchange. The purchase and holding of Chinese class A shares is generally reserved to Chinese investors and may not be open to foreign investors pursuant to certain regulatory frameworks in the PRC. Once the Sub-fund is invested in securities traded in the PRC, the repatriation of funds from the PRC may be subject to applicable local regulations in force from time to time. There are uncertainties in terms of the application of Chinese local

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regulations and it is not known for sure that no restrictions shall apply on the repatriation of funds by the Sub-fund in the PRC in the future. In addition, given that there may potentially be limits to the total number of shares purchased by investors in listed Chinese companies, the Sub-fund’s capacity to make investments in Chinese class A shares may be limited and/or affected. Class A shares and other shares In principle, the issuance of different classes of shares from the same company traded in different stock exchanges in different currencies may result in a deviation in the rating and performance of different classes of shares given the particular features of the stock exchange and/or currencies in question. Consequently, such a deviation does not necessarily reflect a significant and essential difference in the essential value of the share. Any type of performance deviation carries a risk of major deviations in the future evolution of the share class in question and a potential stock market downturn in order to correct this deviation. In particular, since in the past national investors could only trade Chinese class A shares, the Chinese government took measures to influence the investment decisions of the holders of these shares, which particularly led to a pressing demand from national investors and a potential overvaluation of Chinese class A shares compared to Chinese class B or H shares of the same companies, which may even affect the future situation of the market. Disclosure of interest Pursuant to the laws, rules and regulations of Mainland China, if a Sub-fund holds or controls shares (on an aggregated basis, i.e. including shares issued locally in Mainland China and abroad in the same company established in Mainland China and listed on a Mainland China stock exchange (a “Mainland China Listco”), whether they are held via Stock Connect (as defined here below), the QFII/RQFII regime or other investment channels) in a Mainland China Listco above a certain threshold which may be specified from time to time, this Sub-fund must report its interest within a set period and must not buy or sell said shares during that period. The Sub-fund in question must also report any substantial modification of its equity investment. That kind of information may expose the assets of the Sub-fund in question to the public with an ensuing negative impact on the Sub-fund’s performance. When a company established in Mainland China holds both Chinese class H Shares listed in the SEHK and Chinese class A Shares listed in the SSE or the SZSE (as defined below), if the Sub-fund’s interest exceeds a certain threshold (as specified from time to time) of any class of voting shares (including Chinese class A Shares purchased via Stock Connect) in said company established in Mainland China, the Sub-fund is subject to a disclosure obligation in accordance with Part XV of the Securities and Futures Ordinance (Cap 571) (the “SFO”). Part XV of the SFO is not applicable when the company established in Mainland China has no shares listed on the SEHK. Foreign ownership restrictions The legislation in Mainland China restricts the number of shares a foreign investor (including a Sub-fund) is authorised to hold in a single Mainland China Listco entity, as well as the maximum combined assets of all foreign investors in a single Mainland China Listco entity. These restrictions to foreign ownership may be applied on an aggregate basis (that is to say, to all shares issued in the domestic market and abroad by the same listed company, no matter whether the equity investments in question are traded on Stock Connect, the QFII/RQFII regime or other investment channels). The single foreign investor ceiling is currently set at 10% of the shares of a portfolio company in Mainland China and the global foreign investor ceiling is currently set at 30% of the shares of a portfolio company in Mainland China. These limits may be modified from time to time. Currencies and foreign exchange The price of Chinese class A shares is set in RMB and the Chinese government monitors the future fluctuations of exchange rates and currency conversion. The exchange rate fluctuates based on a foreign currency basket; this exchange rate may thus fluctuate considerably compared to the US dollar and the Hong Kong dollar, or other foreign currencies in the future. At present, there is no market or instrument for an investor to conduct hedging operations in order to efficiently reduce the exchange rate risk linked to the RMB, and there is no sign of there being instruments for currency hedging available in

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the near future. In particular, any depreciation of the RMB will decrease the value of dividends and other gains which an investor may receive from its investments.

- Risks linked to Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect

A Sub-fund may invest and have direct access to certain eligible Chinese class A shares via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect (collectively referred to as "Stock Connect"). Stock Connect is a securities trading and clearing programme developed by the Stock Exchange of Hong Kong Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the China Securities Depository and Clearing 40 Corporation Limited (“ChinaClear”), the Shanghai Stock Exchange (“SSE”) and the Shenzhen Stock Exchange (“SZSE”) respectively, in order to enable mutual access to financial markets between the PRC (excluding Hong Kong, Macau and Taiwan) (“Mainland China”) and Hong Kong. Within the framework of a joint announcement published by the Securities and Futures Commission and China Securities Regulatory Commission (“CSRC”) on 10 November 2014, trading on Stock Connect started on 17 November 2014. Stock Connect comprises a Northbound Trading Link (for investments in Chinese class A shares) through which investors, via their brokers in Hong Kong and a securities trading company to be determined by the SEHK, may be able to place orders to trade eligible shares listed and traded on the SSE or SZSE, by forwarding orders to the SSE or SZSE respectively. Within Stock Connect, foreign investors (including the Sub-fund) may be authorised, subject to rules and regulations issued/amended from time to time, to trade certain eligible securities (including Chinese class A Shares) listed and traded on the SSE or SZSE respectively (collectively referred to as "Chinese securities") via the Northbound Trading Link. The Chinese securities listed on the SSE, available via Shanghai-Hong Kong Stock Connect, consist of all shares included from time to time in the SSE 180 and SSE 380 indices, as well as any Chinese class A shares listed on the SSE which are not included in the aforementioned indices, but whose relevant Chinese class H shares are listed on the SSE, except (i) those that are not listed in Renminbi (RMB) and (ii) those that are on the risk alert board. The list of admissible securities may be modified subject to the assessment and approval by competent Chinese regulatory authorities from time to time. The Chinese securities listed on the SZSE, available via Shenzhen-Hong Kong Stock Connect, consist of all shares included from time to time in the SZSE and SZSE Small/Mid Cap Innovation indices, with a minimum market capitalisation of RMB 6 billion, as well as any Chinese class A shares listed on the SZSE which are not included in the aforementioned indices, but whose relevant Chinese class H shares are listed on the SEHK, except for (i) shares listed on the SZSE which are not traded in Renminbi (RMB) and (ii) those listed on the SZSE and included in the risk alert board. The list of admissible securities may be modified subject to the assessment and approval by competent Chinese regulatory authorities from time to time. For more information about Stock Connect, please visit: http://www.hkex.com.hk/eng/market/sec_tradinfra/chinaconnect/chinaconnect.htm Rules of the domestic market An essential principle to trade with securities via Stock Connect is that applicable laws, rules and regulations on the national securities market are applicable to their investors. Concerning Chinese securities, Mainland China is the domestic market and the Sub-fund must thus conform to laws, rules and regulations of Mainland China. In the event of any violation of said laws, rules or regulations, the stock exchange in question (SSE or SZSE, as the case may be) has the power to conduct an investigation and may require participants in the SEHK Exchange to provide information about the Sub-fund and assist in the investigations. However, certain legal and regulatory requirements in Hong Kong shall continue to apply to the trading of Chinese securities. Liquidity and volatility risks The existence of a liquid trading market for Chinese class A shares may depend on the existence of a supply and demand for these shares. The price at which the securities may be purchased or sold by the Sub-fund and the net asset value of the Sub-fund may be adversely affected if the trading markets for Chinese class A shares are limited or non-existent. The market for Chinese class A shares in China may be more volatile and unstable (for example, given the risk of suspension of a share or particular government intervention). The market volatility and settlement difficulties in Chinese markets for Chinese

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class A shares may also cause considerable fluctuations in the prices of securities traded on these markets, and thereby affect the value of the Sub-fund. Quota limitation risk There is a daily quota restricting the maximum value of all purchase transactions which may be conducted on every trading day (“daily quota”). The daily quota may be modified from time to time without prior notice. The SEHK, SSE and SZSE may also set prices and other restrictions to purchase orders in order to prevent the artificial application or filling of the daily quota. These quotas and other limitations may limit the Sub-fund’s capacity to invest in Chinese securities in a timely fashion, and the Sub-fund may not be in a position to efficiently pursue its investment policy. The Sub-fund may sell its Chinese securities, whether or not the daily quota has been has exceeded. Risk of suspension The SEHK, SSE and SZSE reserve the right to suspend trading, if necessary, to ensure an orderly and equitable market and to carefully manage the risks which may adversely affect the Sub-fund’s capacity to access the Chinese market. Differences on a trading day Stock Connect operates on the days when markets in Mainland China and Hong Kong are open for business and when banks in the markets in question are open on settlement days. Thus, it may happen that it is a normal trading day in the Mainland China market, but Hong Kong investors (such as the Sub-fund) may conduct no transaction via Stock Connect. The Sub-fund may be subject to a risk of fluctuation of the prices of Chinese securities during the period when Stock Connect is not trading. No trading day It is prohibited to conduct any transactions on Chinese class A share markets in Mainland China on the same day. If the Sub-fund purchases Chinese securities on T day, it may not sell said securities until after liquidation completion (normally T+1 day). No off-board transactions and transfers With a few exceptions, Chinese securities may not be traded or transferred other than through Stock Connect. No manual or block trading No manual or block trading shall be allowed within Stock Connect. Placing an order Only limited price orders with a specified price are allowed under the Stock Connect rules, where purchase orders can be executed at the current best price or at a lower price and sale orders can be executed at the specified price or at a higher price. Market orders will not be accepted. Price caps Chinese securities are subject to a general price cap of ±10% based on the closing price of the preceding trading day. In addition, Chinese securities on the risk alert board are subject to a price cap of ±5% based on the closing price of the preceding trading day. The price cap may be modified from time to time. All orders for Chinese securities must be below the price cap. Delisting from the SSE and of companies listed on the SZSE According to SSE and SZSE rules, if a listed company is in the course of being delisted or if its operations are unstable due to financial reasons or otherwise, so that it risks being delisted or the investors’ interests may be exposed to undue harm, the listed company shall be transferred to the risk alert board. The risk alert board may be modified at any time with no prior notice. If a Chinese security initially eligible to trading on Stock Connect is then transferred to the risk alert board, the Sub-fund shall only be authorised to sell the Chinese security in question and may not purchase it any more. Special Chinese Securities SEHK will accept or designate securities that cease to meet the eligibility criteria for Chinese securities as Special Chinese Securities (provided they remain listed on the SSE or SZSE, respectively). In

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addition, any securities or options (not eligible to be traded on Stock Connect) received by the Sub-fund following an allocation of rights, a conversion, a takeover, other transactions involving securities or unusual trading activities shall be accepted or designated by SEHK as special Chinese securities. The Sub-fund may only sell “Special Chinese Securities” and not buy them. Restrictions on sale imposed by “front-end” surveillance The Chinese regulations require that before an investor sells a share, it must hold sufficient shares in the account; if this is not so, the SSE and SZSE respectively shall reject the sales order in question. The SEHK shall conduct a pre-trading check of Chinese securities sales orders of its participants (that is to say, securities brokers) to ensure there is no over-sale. Consequently a broker through which the Sub-fund placed a sales order may reject it if the Sub-fund does not hold a sufficient number of Chinese securities available on its account by the applicable deadline as specified by said broker, or if there is a delay or default in the transfer of the Chinese securities in question on one of the broker’s clearing accounts. ChinaClear default risk HKSCC and ChinaClear establish the clearing links and each is a participant of the other to facilitate the clearing and settlement of cross-border transactions. In its capacity as national central counterparty of the Chinese securities market, ChinaClear operates a comprehensive network of clearing, settlement and holding facilities. ChinaClear has established risk management measures and framework approved and supervised by the CSRC. ChinaClear’s default risks are considered low. If ChinaClear is in remote default and ChinaClear is declared in default, HKSCC stated that it may (but is under no obligation to) take legal action to recover the outstanding Chinese securities and funds by any available remedies under law or by liquidation of ChinaClear (as the case may be). Since ChinaClear does not contribute to HKSCC’s guarantee fund, the latter shall not make use of its own guarantee fund to cover any residual loss resulting from the liquidation of ChinaClear’s positions. HKSCC shall in turn distribute Chinese securities and/or recovered amounts to clearing parties on a pro rata basis. The broker in question through which the Sub-fund is trading shall in turn distribute Chinese currency and/or securities insofar as they are recovered directly or indirectly from HKSCC. Even though the likelihood of payment default by ChinaClear is considered low, if that event takes place, the Sub-fund may face delays in the recovery process or may not fully recover its losses from ChinaClear. Chinese class A shares traded via Stock Connect are issued in non-cash form, so that such investors as the Sub-fund do not hold any physical Chinese class A shares. Hong Kong and foreign investors, such as the Sub-fund, which have purchased Chinese securities via Northbound trading must hold the Chinese securities in the securities accounts of their brokers or custodians within the central clearing and settlement system managed by HKSCC for clearing securities registered with or handled by SEHK. More information about custody methods related to Stock Connect is available upon request at the Fund’s registered office. Default risk of HKSCC Any act or omission by HKSCC or any breach or delay of HKSCC’s obligations may result in default of Chinese securities and/or any monies related thereto and the Sub-fund’s access to the Mainland China market will be negatively affected and this may result in the Sub-fund incurring losses. Operational risk Stock Connect offers Hong Kong and foreign investors, such as the Sub-fund, a new channel to directly access the Chinese stock exchange. Stock Connect is based on the operation of operational systems of the market players in question. Market players may be involved in this programme provided that they meet certain requirements in terms of information technology, risk management and other requirements which may be specified by the competent stock exchange or clearing house. It is worth noting that the securities regime and legal systems of the two markets differ considerably and that, for the trial programme to run smoothly, the market players must be able to consistently solve problems arising from said differences. Furthermore, the “connectivity” of Stock Connect programmes requires the cross-border routing of orders. This requires the development of new IT systems by the SEHK and participants in the stock exchange (that is to say, a new order routing system (“China Stock Connect System”) which the SEHK must implement and to which the stock exchange participants must be linked). Nothing guarantees that

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the SEHK system and market participants' system will run smoothly or continue to adapt to changes and the evolution of both markets. In the event that the relevant systems did not work properly, the transactions on both markets within the programme may be disrupted. The Sub-fund’s capacity to access the Chinese class A shares market (and thus to pursue its investment strategy) will be adversely affected. Nominee agreements to hold Chinese class A shares The Chinese securities purchased by the Sub-fund shall be held by the sub-custodian in question in accounts of the Hong Kong Central Clearing and Settlement System (“CCASS”) managed by HKSCC. HKSCC in turn holds Chinese securities as “designated holder” through a securities account in its name registered with ChinaClear. It would seem that the Sub-fund may actually own Chinese securities pursuant to Mainland China legislation. Nevertheless, it is worth noting that the exact nature and the methods to enforce the Sub-fund’s rights and interests under Mainland China law are not certain and that there are few instances involving a nominee account structure before courts in Mainland China. It is also worth noting that, as is the case in other central clearing and securities custody systems, the HKSCC is under no obligation to enforce the Sub-fund’s rights before courts in Mainland China. If the Sub-fund wishes to enforce its property rights before Mainland courts, it must assess the legal and procedural issues in a timely fashion. Segregation The securities account with ChinaClear in HKSCC’s name is an omnibus account, in which Chinese securities having more than one final owner are mixed. Chinese securities shall only be separated in accounts opened with the HKSCC by clearing participants, and in accounts opened with the sub-custodians in question by their clients (including the Sub-fund). Compensation of investors Investments of the Sub-fund through Northbound trading within Stock Connect shall not be hedged by the Hong Kong Investor Compensation Fund. The Hong Kong Investor Compensation Fund was created to compensate investors incurring financial loss further to the default of an authorised intermediary or a financial institution concerning products traded on the Hong Kong stock exchange. Given that the instances of default in Northbound trading via Stock Connect do not concern products listed or traded on the SEHK or the Hong Kong Futures Exchange Limited, they shall not be hedged by the Investor Compensation Fund. On the other hand, given that the Sub-fund trades via Northbound trading through securities brokers in Hong Kong, but not in the RPC, these investments are thus not protected by the China Securities Investor Protection Fund in the PRC. Trading fees In addition to the trading fees and stamp duties linked with trading of Chinese class A shares, the Sub-fund may be subject to new portfolio expenses, dividend tax and income tax arising from share transfers yet to be determined by competent authorities. Risk linked to regulations The Stock Connect rules are departmental regulations enforceable in the PRC. However, the application of these rules has not been tested and there are no guarantees that Chinese courts will enforce them, for example in liquidation proceedings of Chinese companies. Stock Connect is unprecedented and is subject to regulations issued by regulatory authorities and implementation rules established by stock exchanges in the PRC and Hong Kong. In addition, new regulations may be introduced from time to time by regulatory bodies on cross-border transactions and the application of cross-border laws within the framework of Stock Connect. The regulation has not been put to the test yet, and the method of its application is by no means certain. In addition, the current regulations are subject to change. There is no assurance that Stock Connect will remain in place. The Sub-fund may be adversely affected by said changes. Tax rules

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On 14 November 2014, the Ministry of Finance, the State Administration of Taxation and the CSRC issued a joint statement on the rules to be imposed on Shanghai-Hong Kong Stock Connect under Caishui 2014 No. 81 (“Notice no. 81”). According to Notice no. 81, income tax for natural persons and income tax for companies shall be temporarily waived on capital gains realised by investors based in Hong Kong or abroad (including the Sub-fund) during the trading of Chinese class A shares via Shanghai-Hong Kong Stock Connect, as of 17 November 2014. Nevertheless, investors in Hong Kong and abroad must pay a 10% tax on dividends and/or free shares, to be withheld and paid to the competent authority by listed companies. However, the exemption may be modified, eliminated or revoked in the future. In that case, a prospective retroactive tax liability may be applied. There is also a risk that tax authorities in Mainland China seek to collect tax retroactively, without giving any prior warning. If that tax is collected, the tax obligation shall be imposed on the Sub-fund. However, these liabilities may be mitigated under an applicable tax agreement. Risks linked to ADRs The American Depositary Receipts (ADRs) are instruments certifying shares traded outside markets where depositary receipts are traded. Consequently, even though depositary receipts are traded on Regulated Markets, there may be risks linked to said instruments worthy of consideration, such as the possibility of shares underlying these instruments being subject to political, inflationary, exchange rate or custody risks.

6) Risks linked to investment in other UCITS/UCI

Investment in other UCITS or UCIs can lead to duplication of certain costs and expenses charged to the Sub-fund and such investments can generate a double withdrawal of costs and fees which are levied at the Fund level and at the level of UCITS and/or UCIs in which it invests.

7) Risks linked to investing in derivative products

The derivative products include a number of risks and constraints. The risks of these products heavily depend on the positions taken by the Fund. In some cases the loss is limited to the premium invested, while in other cases it may be considerable. The use of derivatives such as futures contracts, options contracts, warrants, futures OTC, swaps and swaptions, involves greater risks. The ability to successfully use such instruments depends on the ability of managers to accurately anticipate changes in stock prices, interest rates, exchange rates or other economic factors as well as in the accessibility of liquid markets. If managers' forecasts are wrong, or if the derivatives do not work as expected, this may result in greater losses than if these derivatives were not used. In some cases, the use of the above instruments can have a leverage effect. This leverage adds additional risks because the losses may be disproportionate to the amount invested in these instruments. These instruments are highly volatile and their market values may be subject to significant fluctuations.

8) Risks linked to investment in debt securities

Investing in debt securities exposes the Investor to the risk of inability of an issuer or a guarantor to carry out the redemption of principal and interest of the bond (credit risk). These securities may also be subject to price volatility due to factors such as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. The lower-rated securities are by their nature more likely to react to events affecting market and credit risk than higher-rated securities which react primarily to fluctuations in the general level of interest rates. For each Sub-fund, the Company will consider both credit risk and market risk before taking any investment decision. As regards more specifically the case of complex transferable securities, these may also be more volatile, less liquid and harder to evaluate than less complex securities. The timing of purchases and sales of debt securities may result in capital gain or loss and the value of debt securities generally varies inversely with respect to the current interest rate.

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A Sub-fund may invest in Rule 144A securities, i.e., securities offered in a confidential manner, which can be resold only to certain qualified institutional buyers (such terms are defined in the law of the United States entitled "Securities Act of 1933", as amended). Since these securities are negotiated between a limited number of investors, certain Rule 144A securities may be illiquid and are a risk for the Portfolio since it may not sell these securities quickly or it may do so in adverse market conditions.

9) Risks linked to investment in mortgage- or asset-backed securities

Credit risk: Certain borrowers may default on their mortgage obligations or the guarantees underlying the mortgage-backed securities may default. A Sub-fund may partly invest in mortgage- or asset-backed securities which are not guaranteed by a government, which may make this Sub-fund subject to substantial credit risk. Interest rate risk: Changes in interest rate may have a significant impact on a Sub-fund investing in mortgage- or asset-backed securities. Indeed, should interest rates rise, the investments value of a Sub-fund’s portfolio may fall since fixed income securities generally fall in value when interest rates rise. A Sub-fund investing in mortgage- or assets-backed securities may face extension risk and prepayment risk, both being a type of interest rate risk: - during periods of rising interest rates, underlying borrowers may pay off their obligations at a slower pace

than expected, thus extending the average life of mortgage- or asset-backed securities. Such increase of the securities’ duration may change these securities from short- or intermediate-term into long-term securities and therefore reduce the value of such securities.

- during periods of falling interest rates, mortgage- or asset-backed securities may be prepaid, thus possibly reducing returns because the Sub-fund will have to reinvest the prepayments on mortgage- or asset-backed investments in lower-yielding investments.

Liquidity risk: A Sub-fund investing in mortgage- or asset-backed securities may face liquidity risk if it cannot sell a security at the most opportunistic time and price. Thus, such a Sub-fund may face higher liquidity risk than a Sub-fund investing in other types of securities. Insolvency risk: Finally, enforcing rights against the underlying assets or collateral may be difficult.

10) Risks linked to investment in high yield debt securities

Certain High Yield Bonds rated Ba1 or BB+ and below by Moody’s or Standard & Poor’s respectively are very speculative, involve comparatively greater risks than higher quality securities, including price volatility, and may be questionable as to principal and interest payments. The attention of the potential investor is drawn to the type of high-risk investment that the Sub-fund is authorised to make. Compared to higher-rated securities, lower-rated High Yield Bonds generally tend to be more affected by economic and legislative developments, changes in the financial condition of their issuers, have a higher incidence of default and be less liquid. The Sub-fund may also invest in High Yield Bonds placed by emerging market issuers that may be subject to greater social, economic and political uncertainties or may be economically based on relatively few or closely interdependent industries. Corporate debt securities may bear Fixed Coupon or Fixed and Contingent Coupon or Variable Coupon and may involve equity features such as conversion or exchange rights or warrants for the acquisition of stock of the same or a different issuer (e.g. synthetic convertibles) or participation based on revenue, sales or profits.

11) Risks linked to investment in distressed securities and defaulted securities

- Distressed securities

Any investment in distressed securities may carry supplementary risks for a Sub-fund. These securities are considered predominantly speculative with respect to the ability of the issuer to pay interest and principal or maintain other terms of the issue documents for a long time. They are generally unsecured and may be

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subordinated to other outstanding securities and creditors of the issuer. Although these issues are likely to feature certain qualities and protections, these features do not outweigh the significant uncertainties or significant exposure to adverse conditions. A Sub-fund may thus lose its entire investment, be obliged to accept cash or securities for a lower value than its original investment and/or be forced to accept payment over a longer period. The recovery of interest and principal may incur additional fees charged to the Sub-fund. In these circumstances, the returns generated by the investments of the Sub-fund can not adequately compensate shareholders for the risks taken. - Defaulted securities

Any investment in defaulted securities may carry supplementary risks for a Sub-fund. The failure of an issuer or counterparty may result in losses to the Fund. Issuer risk concerns the impact of the specific situation of the issuer in question, which affects the price of a security in parallel with the general situation on capital markets. Even careful selection of securities can never eliminate the risk of losses resulting from the bankruptcy of issuers. Securities with a higher rating at the time of acquisition may downgrade to distressed or defaulted securities and expose a Sub-fund to the risks associated with such securities.

12) Risks linked to direct and indirect investment in contingent convertible bonds ("CoCo bonds")

CoCo bonds are bonds that automatically convert into shares of the issuer upon the occurrence of a trigger event ("Trigger Event”). Such Trigger Events can be the drop of the issuer's capital level below certain thresholds. The number of shares possibly granted in the future as a result of this bond conversion is determined by a conversion mechanism to be set in advance. CoCo bonds are generally issued by financial institutions to strengthen solvency and automatically increase capital when necessary. The performance of CoCo bonds is not linked to the positive performance of the issuer. Please refer to the non-exhaustive list of risks below: Risk linked to the occurrence of a Trigger Event: trigger Event thresholds may vary from one instrument to another. It is essential for the relevant Sub-funds to be able to assess all conditions. Such conditions are not harmonised for all CoCo bonds so that the risk assessment can be difficult given the relative opaqueness and complexity of these instruments. Risks linked to assessment: the intrinsic value of a CoCo bond is more difficult to determine. It is about assessing the likelihood of the Trigger Event to occur, such as seeing the issuer's capital level go below the previously defined threshold. Furthermore, you need to consider a number of additional factors, conditions of the Trigger Event, instrument ratings, leverage, credit spread of the issuer, coupon frequency etc. Some of these factors are transparent but others may be more difficult to evaluate (as the individual regulatory status of the issuer, its behaviour as to coupon payment and contagion risks). Risk of reversal of capital structure: It is possible that, in the relevant Sub-funds, the shareholders incur in capital losses before the issuer due to a Trigger Event occurring prior to the loss of capital by shareholders. Risk of Call time extension: Some CoCo bonds are issued as perpetual instruments and are redeemable at predetermined thresholds subject to the approval of the Financial Supervisory Authorities. There can be no assurance that these CoCo bonds will be redeemed at their maturity and the relevant Sub-funds may not receive their capital at the expected time. Unknown risks: the structure of CoCo bonds is innovative but lacks relevant experience. During market turmoil, the reaction of financial players is not predictable. At the occurrence of a Trigger Event, there is a

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risk of spreading turmoil in all of the CoCo bonds' class. These risks may be increased in an illiquid environment. Liquidity risks: the small size of the secondary market has a negative impact on the liquidity of CoCo bonds. Risks of performance/suspension of coupon payment: payment of CoCo bonds coupon may depend on the discretionary will of the issuer and may be suspended at any time, for any reason and for any period. The suspension of coupon payment is not akin to an issuer payment default. Suspended payments are not cumulative but are progressively written off. This significantly increases the uncertainty regarding CoCo bonds' valuation. Moreover, it is possible for the issuer to pay dividends to its shareholders and variable remuneration to its staff while the coupon payment is suspended. Risk of capital loss during conversion: Upon conversion, the relevant Sub-funds may have to face a substantial decrease of their nominal amount, or receive shares of a company in difficulty. In case of conversion, the bond is generally subordinated, meaning that the holder will be repaid only after other bondholders. Risks linked to reduced market dimensions: the CoCo bonds market dimension is relatively reduced and this may create some capacity limits if the Sub-fund activities grow.

13) Risks linked to alternative investments strategies

Some Sub-funds may use a variety of alternative investment strategies that involve the use of complex investment techniques. There is no guarantee that these strategies will succeed and their use could cause the Sub-fund concerned to become more volatile and increase its risk of loss. Alternative investment strategies could involve complex securities transactions and could add other risks to the ones linked to the Fund's direct investments in transferable securities.

14) Risks linked to collaterals

Despite collaterals can be taken to mitigate the risk of counterparty default, there is a risk that collaterals taken, particularly in the case of securities, when realised, may not generate sufficient liquidity to settle the debts of the counterparty. This may be due to factors such as improper pricing of collaterals, weaknesses in the valuation of collaterals on a regular basis, adverse market movements in the collateral value, deterioration of the credit rating of the collateral issuer or the illiquidity of the market in which the collateral is negotiated. When the Company, on behalf of the Fund, is in turn obliged to issue collaterals with a counterparty, there is a risk that the value of the collaterals that the Company, on behalf of the Fund, gives to the counterparty is greater than liquid assets or investments received by the Fund. In both cases, where there are delays or difficulties in recovering assets or liquid assets, collaterals provided to counterparties or received from counterparties, the Company, on behalf of the Fund, may encounter difficulties in responding to purchase or redemption applications or in meeting delivery or purchase obligations under other contracts. Since the Company, on behalf of the Fund, may reinvest the cash collaterals it receives, it is possible that the value of the repayment of the reinvested cash collateral will not be sufficient to cover the amount to be repaid to the counterparty. In this circumstance, the Company, on behalf of the Fund, would be required to cover the loss of profit. In the case of cash collateral reinvestment, all risks associated with a normal investment will apply. Collaterals received by the Company, on behalf of the Fund, may be held at the custodian bank or a third-party custodian. When such assets are held, there is a risk of loss as a result of events such as the insolvency or negligence of the custodian bank or the sub-custodian.

15) Risks linked to total return swap contracts

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For total return swap contracts that do not involve physical holding of securities, synthetic replication through fully funded (or unfunded) total return swap contracts may provide a means of obtaining exposure to strategies that are difficult to implement and which would otherwise be very expensive and difficult to access with physical replication. However, synthetic replication involves a counterparty risk. If a Sub-fund engages in OTC derivative transactions, there is a risk - over and above the general counterparty risk - that the counterparty may default or be unable to fully fulfil its commitments. When the Fund and any of its Sub-funds enter into total return swap contracts on a net basis, the two cash flows are offset and the Fund or the Sub-fund will receive or pay, as the case may be, only the net amount of the two payments. Total return swap contracts concluded on a net basis do not imply physical delivery of investments, other underlying assets or principal. As a result, it is anticipated that the risk of loss on total return swap contracts will be limited to the net amount of the difference between the total return rate of a reference investment, an index or a basket of investments and fixed or variable payments. If the other party to a total return swap contract is in default, under normal circumstances, the risk of loss of the Fund or Sub-fund concerned is the net amount of the total return of payments that the Fund or Sub-fund is contractually entitled to receive.

16) Counterparty risks

With respect to the conclusion of transactions involving counterparties (such as over-the-counter derivatives or total return swap contracts), there is a risk that a counterparty may not be able to fully or partially fulfil its contractual obligations. In the event of default, bankruptcy or insolvency of a counterparty, a Sub-fund may experience delays in the liquidation of positions and significant losses, including a decline in the value of the investment during the period in which the custodian bank seeks to enforce its rights, an inability to realise income on its investment during that period, and costs and expenses incurred to enforce its rights. In such circumstances, a Sub-fund may only recover a limited amount or obtain no recovery at all. In order to mitigate the risk of counterparty default, counterparties to transactions may be required to provide collateral to cover their obligations to the custodian bank. In the event of counterparty default, it would lose its collateral on the transaction. However, the collateral does not always cover exposure to the counterparty. If a transaction with a counterparty is not fully secured by collateral, the credit exposure of the Sub-fund to the counterparty in such a circumstance will be higher than if that transaction had been fully secured by collateral. In addition, there are risks associated with collaterals and investors should take into account the information provided in the section "Risks linked to collaterals" above.

17) Risks of custody

The assets of the Fund are held by the Custodian and the Fund is exposed to the risk of loss of assets held as a result of insolvency, negligence or fraudulent transaction by the custodian bank.

18) Legal risks

There is a risk that agreements and derivative techniques may be terminated, for example because of bankruptcy, irregularity or changes in tax or accounting laws. In such circumstances, the Company, on behalf of the Fund, may be required to cover all losses incurred. In addition, certain transactions are concluded on the basis of complex legal documents. These documents may be difficult to enforce or may be subject to dispute as to their interpretation in certain circumstances. Although the rights and obligations of the parties to a legal document may, for example, be governed by Luxembourg or Italian law, in certain circumstances (such as insolvency proceedings), other legal systems may apply as a priority, and this can affect the enforceability of existing transactions.

19) Operational risks

The operations of the Fund (including investment management) are carried out by the service providers mentioned in this Prospectus. In the event of bankruptcy or insolvency of a service provider, investors may experience delays (for example, delays in the processing of subscriptions, conversions and redemption of units) or other disruptions.

20) Risks related to investments in hybrid securities

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The Sub-funds can invest in hybrid securities that may pose special risks. Hybrid securities may allow the issuer to defer distributions for a specified period of time at its discretion without adverse consequences to the issuer. If the Sub-fund holds a hybrid security that defers its distributions, the Sub-fund may be required to report such income for tax purposes even if it has not yet received this income. Some hybrid securities are not cumulative, i.e. dividends do not accumulate and may not be paid. A unit of the sub-fund's assets may include non-cumulative investments in hybrid securities, where the issuer has no obligation to clear any arrears due to its investors. Hybrid securities may be much less liquid than other securities such as common shares or securities issued by the United States government. Generally, holders of hybrid securities (such as the Sub-funds) do not have voting rights within the issuing company, unless preferential dividends have been in arrears for a specific period of time, during which time the holders of securities may generally elect a number of directors to the Board of Directors of the issuing company. Generally, once all arrears have been paid, holders of securities no longer have voting rights. In certain circumstances, an issuer of hybrid securities may redeem the securities before a specified period of time. For example, for certain types of hybrid securities, a redemption may be triggered by a change in legislation relating to taxation or transferable securities. A redemption by the issuer may negatively affect the return on the security held by the Sub-fund.

21) Risks related to investments in perpetual bonds

Perpetual bonds are fixed-income securities with no maturity date. Perpetual bonds may be exposed to additional liquidity risks under certain market conditions. The liquidity of such investments under conditions of market stress may be limited, negatively affecting the sale price, which may have an adverse impact on the performance of the Sub-fund. In addition, coupon payments may be discretionary and thus may be cancelled by the issuer at any time, for any reason and for any term. Cancellation of coupon payments is not considered a default event.

22) Risks related to long/short position strategies

Strategies relying on long/short positions seek to generate capital gains by establishing long and short positions, by resorting to derivative financial instruments, by buying securities considered to be undervalued and selling securities deemed to be overvalued so as to generate a return and reduce the market risk in general. These strategies shall only be successful if the market ultimately acknowledges this undervaluation or overvaluation in the price of the security, which will not necessarily be the case, or may only take place over longer periods of time. These strategies may result in heavy losses.

23) Risk associated with the arbitrage strategy

There is no guarantee that mergers and acquisitions, and other extraordinary corporate finance transactions, will be completed. If a transaction does not succeed, the Sub-fund may suffer a loss, due to a possible reduction in the price of the target company, and a possible increase in the price of the purchasing company. The risk is greater if the premium is high, and/or if the probability of not completing the transaction is high.

24) Risks associated with investments in Russian securities

Investments in securities emanating from Russian issuers may involve a particularly high degree of risk, many of which stem from persistent political and economic instability. In particular, investments in Russia are subject to the risk of economic sanctions being imposed by non-Russian countries, which could have an impact on companies in many sectors, including energy, financial services and defence, which in turn could have an adverse effect on the Sub-fund’s performance and/or its ability to achieve its investment objective. For example, some investments may become illiquid (for example, in the event that the Sub-fund is prohibited from trading in certain investments related to Russia), which could lead the Sub-fund to sell other portfolio holdings at a disadvantageous time or price in order to meet redemptions of Unitholders. Such sanctions may also prevent non-Russian entities providing services to the Sub-fund from dealing with Russian entities. Investments in Russian securities should be considered highly speculative. These risks and special considerations include: (a) delays in the settlement of portfolio transactions and the risk of loss resulting

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from the Russian system of registration and custody of transferable securities; (b) the pervasiveness of corruption, insider trading and crime in the Russian economic system; (c) the absence of corporate governance provisions applicable in Russia in general and (d) the absence of rules or regulations relating to investor protection. Russian securities are issued in book-entry form, with ownership recorded in a share register maintained by the issuer's registrar. Transfers are made by entries in the books of registrars. Assignees of securities have no ownership rights in such securities until their names appear in the issuer's security holder register. Legislation and practice on the registration of equity investments is not well developed in Russia and delays in registration and deficiencies in the registration of securities may occur. Like other emerging markets, Russia does not have a central source for issuing or publishing information on securities transactions. The custodian cannot therefore guarantee the completeness and timeliness of the distribution of securities transaction notifications.

25) Risks related to investment policies with an ESG approach (“Environmental, Social & Governance” criteria)

The Sub-funds pursuing an ESG approach use certain ESG criteria as part of their investment strategy, as determined by their respective entity in charge of the ESG analysis and described in their respective investment policy. The use of ESG criteria may affect the performance of a Sub-fund, which may therefore have a different performance compared to other Sub-funds with a similar investment policy but which do not take ESG criteria into account. Following an ESG approach based on exclusion criteria may lead the Sub-fund in question not to seize the opportunity to buy certain securities when it would have been advantageous to do so, and/or to sell securities because of their ESG characteristics when it would be disadvantageous to do so. In the event that the ESG characteristics of a security held by a Sub-fund change, causing the Manager to sell the security in question, neither the Sub-fund nor the Company nor the investment advisors will be liable for such a change. The exclusion criteria used might not correspond to each investor's subjective ethical vision. In assessing a security or issuer according to ESG criteria, the Company relies on information and data provided by third parties advising it, and this information may therefore be incomplete, inaccurate or unavailable. As a result, there is a risk that the Company may misprice a security or an issuer. There is also the risk that the Company may not apply the ESG criteria correctly or that a Sub-fund may have indirect exposure to issuers who do not meet the ESG criteria used in that Sub-fund. The Sub-funds, the Company and the investment advisors do not represent or warrant, explicitly or implicitly, the impartiality, accuracy, precision, reasonableness or completeness of the ESG valuation.

26) Risks associated with frontier markets

Investments in frontier market countries entail the same risks as those mentioned in the abovementioned section “Risks associated with emerging country markets”, but on a broader scale. Frontier markets are even less economically developed than emerging markets, are subject to greater political and economic instability and are associated with higher political, legal, judicial and regulatory risks. Investor protection is generally weak and investors may be exposed to the risk that their assets may be compulsorily purchased without adequate compensation or subject to repatriation restrictions; accounting practices, corporate governance and transparency are generally poor. In some countries, securities markets do not have the levels (or only low levels) of liquidity and efficacy controls, regulation and oversight associated with more developed markets. The lack of liquidity may adversely affect the value or the sale of assets.

4. Management and administration I. Management Company

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The Fund is managed on behalf of Unitholders by the Company. The Company is a corporation (Société Anonyme) established under Luxembourg law on 24 December 1999 and named “AZ Fund Management S.A.". The Company’s registered office is located at 35, Avenue Monterey, L-2163 Luxembourg. The Articles of Association of the Company were filed with the Registrar of the District Court of Luxembourg on 21 January 2000 and published in the Mémorial on 15 March 2000. Further to this Fund, the Company manages AZ Multi Asset, AZ Fund 3 and FIS AZ Pure China. Following the Extraordinary General Meeting of 1 July 2002, the Company’s Articles of Association were amended by means of a notarial deed and published in the Mémorial on 6 August 2002. The Company's Articles of Association were last amended on 10 January 2019 and published in the Electronic Register of Companies and Associations (Registre Electronique des Sociétés et Associations or "RESA") on 5 March 2019. The Fund Management Company is registered under number B 73.617 with the Luxembourg Business Register (the “Business Register”). The business purpose of the Company is the collective management of UCITS established under Luxembourg or foreign law, pursuant to Directive 2009/65/EC as amended or replaced as well as other undertakings for collective investment or mutual funds under Luxembourg law and/or foreign law that are not included in said directive. The Company may also employ all techniques related to the administration and management of the Fund for its business purposes, in accordance with its Articles of Association and Management Regulations. In more detail, the Company performs the following functions, by means of example and not limited to these:

- Fund asset management; - Administration:

- a) legal and accounting services for the Fund; - b) dealing with client requests for information; - c) maximising the returns on investments and establishing the value of units; - d) regulatory compliance control; - e) Unitholder registrar; - f) revenue distribution, where applicable; - g) issue, redemption and conversion of Units; - h) drawing up and termination of contracts; - i) transaction registration and file.

- Trading The Company is responsible for central administration required by law, such as the accounting of the Fund, calculation of the net asset value of Units, subscription, redemption and conversion services and registration of Units and also supervises the delivery of all announcements, statements, notices and other documents to Unitholders. The Company has stipulated agreements with third parties according to which the intermediaries pay for goods and services (e.g. research, advisory, IT) received by the Company. All goods and services included in these agreements are required for the performance of the Company’s fund management activity as it is on Fund's behalf that all sale/purchase transactions are proposed and exploited for this purpose. The contractual conditions and methods used for these services ensure that transactions performed on behalf of the Fund never take place under unfavourable conditions, given that the intermediary is committed to ensuring “best execution” conditions for the Company. The Company’s fully paid up share capital amounted to EUR 1,125,000 on 31 December 2014, represented by 1,125 registered shares worth EUR 1,000 each. The balance sheets and profit and loss accounts of the Company shall be included in the annual reports of the Fund. The Company performs the functions deriving from its condition of sponsoring entity of the Fund, as per the US Foreign Account Tax Compliance Act ("FATCA"). In accordance with Directive 2009/65/EC and articles 111-bis and 111-ter of the 2010 Law, the Company established a remuneration policy for those categories of staff whose professional activities have a material impact on the risk profile of the management Company or the Fund. These categories of staff include the members of the board of directors, the managers in charge of day-to-day management, the managers in

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charge of the portfolio management of the UCITS and their sub-funds, the internal control functions, the managers of department/investment management, administration, marketing, human resources and IT, analysts and any employee receiving total remuneration that falls into the remuneration bracket of senior management and risk takers, whose professional activities have a material impact on the management Company’s risk profile or the risk profiles of the UCITS that it manages. The remuneration policy is consistent with and promotes sound and effective risk management and does not encourage risk taking that is incompatible with the risk profiles of the Fund and its sub-funds or with its Management Regulations and does not prevent the Company to fulfil its obligation to act in the best interest of the Fund. The remuneration policy includes a performance assessment within a multi-year framework adapted to the investor's recommended holding period for the Fund so as to ensure that it reflects the long-term performance of the Fund and its investment risks. Variable remuneration is also based on a number of other qualitative and quantitative factors. The remuneration policy contains an appropriate balance between the fixed and variable components of total remuneration. The remuneration policy was designed to promote good risk management and discourage risk taking beyond the level of risk tolerated by the Azimut Group, taking into account the investment profiles of the funds managed, and also to implement measures ensuring to avoid conflicts of interest. The remuneration policy is reviewed annually. The updated remuneration policy of the Company - including, but not limited to, a description of how remuneration and benefits are calculated as well as the identity of the persons responsible for the granting of remuneration and benefits - is available on the websitehttp://www.azimut-group.com/en/international-presence/az-fund-management. A hard copy is made available free of charge, on request, at the registered office of the Company.

II. Investment Manager

When establishing the general management policies of each Sub-fund, the Company may be assisted by one or more Investment Managers (hereinafter "Manager(s)"). Where applicable, the name of this or these Manager(s) as well as the relative fees are included in the Sub-fund factsheets. The rights and obligations of the Investment Manager(s) are dictated by one or more contracts (the “Management Contract(s)”).

III. Distributor

The Company can appoint distributors in the country where Fund Units are traded. In particular, the Company has appointed Azimut Capital Management SGR SpA as its main distributor of Fund units for Italy. As such, the Distributor shall be paid partly based on Unit subscriptions and redemption fees generated. The main distributor may use specially appointed sub-distributors for the distribution of individual Sub-funds. In accordance with the local laws of the countries in which Units are distributed, the Distributor may, with the Company’s permission, act as nominee on behalf of investors (nominees are intermediaries which liaise between investors and their chosen UCIs). In this role, the Distributor shall subscribe or redeem the Fund Units in its own name but, as nominee, shall act on behalf of the investor. Having said that, unless otherwise specified by local legislation, investors are entitled to invest directly in the Fund without using the services of a nominee. Moreover, investors who choose to subscribe via a nominee shall maintain a direct right to Units thus subscribed. However, it should be noted that the previous paragraph does not apply in the event that nominee services are indispensable, or even mandatory for legal and regulatory reasons or due to consolidated practices. The functions of nominee may be exercised exclusively by financial sector professionals, according to Luxembourg law, resident in a FATF member country. The list and details of nominees are available at the Company’s registered office.

IV. Investment Advisor(s)

http://www.azimut-group.com/en/international-presence/az-fund-management

http://www.azimut-group.com/en/international-presence/az-fund-management

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In order to establish the targets and investment policies of each Sub-fund as well as to receive advice on the investment of Fund assets, the Company’s Board of Directors may be assisted by one or more Investment Advisors. The rights and obligations of the Investment Advisor(s) are established by one or more “Investment Advisory Agreements”. For services rendered, the Investment Advisor(s) shall receive an advisory fee for investments, in accordance with the terms and conditions established by the “Investment Advisory Agreement(s)”. Where applicable, the name of the Advisor(s) is shown in the Sub-fund factsheets.

5. Fund and Company Auditor The Fund’s financial reports and Management Company accounts are audited by Ernst & Young Inc., with registered office at 35E, avenue John F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg, in their capacity as Business Auditor for the Fund and the Management Company.

6. Custodian, Paying Agent, Registrar, Transfer Agent and Administrative Agent BNP Paribas Securities Services, Luxembourg branch, has been appointed as the custodian (the “Custodian”) of the Fund pursuant to a written agreement entered into on 20 June 2016 by and between BNP Paribas Securities Services, Luxembourg branch, and the Company on behalf of the Fund. BNP Paribas Securities Services, Luxembourg branch, is a subsidiary of BNP PARIBAS Securities Services SCA, fully held by BNP Paribas SA. BNP PARIBAS Securities Services SCA is a bank organised as a company (Société en commandite par actions) established under French law, registered under number 552 108 011, authorised by Autorité de Contrôle Prudentiel et de Résolution (ACPR - the French Prudential Supervision and Resolution Authority) and supervised by Autorité des Marchés Financiers (AMF - the French Financial Markets Regulator), with registered office at 3, rue d'Antin, 75002 Paris, operating through its Luxembourg branch with offices at 60, avenue J.F. Kennedy, L-1855 Luxembourg and subject to supervision by the CSSF. The Custodian has three types of functions, namely (i) supervisory missions (under article 34(1) of the 2010 Law), (ii) monitoring of the Fund’s cash flows (under article 34(2) of the 2010 Law) and (iii) custody of the Fund’s assets (under article 34(3) of the 2010 Law). Within the frame of its supervisory missions, the Custodian must:

- ensure that the sale, issue, redemption and cancellation of Units performed on behalf of the Fund are undertaken in accordance with the law and the Management Regulations;

- ensure that the value of Units is calculated in accordance with the law and the Management Regulations; - carry out the instructions of the Company operating on behalf of the Fund, unless they conflict with the

law or the Management Regulations; - ensure that in transactions involving the assets of all Sub-funds, the consideration is remitted to it within

the usual time limits; - ensure that the income of the Fund is used in accordance with the law and the Management Regulations.

The primary objective of the Custodian is to protect the interests of the Fund's Unitholders, which will always prevail over commercial interests. The potential conflicts of interest can be identified, especially if the Company or the Fund also maintains business relationships with BNP Paribas Securities Services, Luxembourg branch, in parallel to its appointment as Custodian.

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These situations may arise in relation to services offered, particularly regarding:

• outsourcing of middle or back office functions (order execution, holding positions, post-trade monitoring of the Fund's investment policy, collateral management, OTC evaluation, exercise of administrative functions including the calculation of the net asset value, transfer agent, dealing services) when BNP Paribas Securities Services or its subsidiaries act as an agent of the Fund or the Company, or

• when BNP Paribas Securities Services or its subsidiaries act as counterparty or ancillary service provider regarding in particular the execution of foreign exchange products or bridge financing.

The Custodian is responsible for ensuring that all transactions related to such business relationships between the Custodian and another entity of the same group as the Custodian are managed on an arm's length basis and in the best interest of the Fund’s Unitholders. To manage these situations of conflicts of interest, the Custodian has established and maintains a conflict of interest management policy aimed at:

- - The identification and analysis of potential conflicts of interest; - The recording, management and monitoring of conflict of interest situations:

o Based on the permanent measures in place to manage conflicts of interest such as segregation of duties, separation of reporting lines, monitoring of internal insider lists;

o Implementing: preventive and appropriate measures such as the creation of ad hoc watchlist, new

information barriers (including operational and hierarchical separation of Custodian services from other activities) or checking that transactions are properly processed and/or informing the Unitholders of the Fund concerned;

or refusing to manage activities that may give rise to conflicts of interest; ethical rules; mapping of conflict of interest situations identified with an inventory of permanent

measures established to continually protect the interests of the Fund; or internal procedures, including (i) the appointment of service providers, and (ii) new

products and new activities related to the Custodian to determine any situation which may give rise to conflicts of interest.

In case of conflict of interest, the Custodian will use all reasonable efforts to resolve with impartiality the situation giving rise to the conflict of interest (taking into account its own obligations and duties) and ensuring that the Fund and its Unitholders are treated impartially. The Custodian may delegate to third parties the custody of the Fund's assets in accordance with the conditions established by the applicable laws and regulations as well as under the custodian bank agreement. The process of appointing and supervising delegates follows the highest quality standards, including the management of potential conflicts of interest that may arise in connection with these appointments. These delegates must be subject to prudential supervision (including capital requirements, supervision in the jurisdiction concerned and periodic external audits) for the custody of financial instruments. The liability of the Custodian will not be affected by any delegation of powers. A potential conflict of interest may arise in situations where delegates can get in touch or do separate business/trade with the Custodian in parallel to the relationship resulting from the delegation of custody functions. To avoid potential conflicts of interest to take place, the Custodian has implemented and maintains an internal organisation for which these separate trade/business relationships do not affect the appointment of delegates. A list of these entities is available at: http://securities.bnpparibas.com/files/live/sites/portal/files/contributed/files/Regulatory/Ucits_delegates_EN.pdf This list can be updated regularly. Updated information on custody duties delegated by the Custodian, the list of delegates and sub-delegates and potential conflicts of interest that may result from such delegation may be obtained free of charge from the Custodian, on request.

http://securities.bnpparibas.com/files/live/sites/portal/files/contributed/files/Regulatory/Ucits_delegates_EN.pdf

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Updated information on the tasks of the Custodian and conflicts of interest that can occur is available to investors on request.

The Company acting on behalf of the Fund may terminate the appointment of the Custodian with written notice of ninety (90) days; the Custodian may as well give up its mandate by written notice of ninety (90) days to the Fund. In these cases, a new custodian bank must be appointed to assume the duties and responsibilities of Custodian, as defined by the custodian bank agreement signed for this purpose. The replacement of the Custodian must take place within two months.

7. Unitholder rights Any natural or legal entity may become a Unitholder and may acquire one or more Units of the various Sub-funds by paying the subscription price calculated based on and according to the methods indicated in chapters 9 and 12. Unitholders have the right to joint ownership of the Fund’s assets. Unitholders also agree to the Prospectus, Management Regulations and any amendments thereof. For each Sub-fund, each of the Units is indivisible. The joint owners, as well as remaindermen and usufructuaries of Units shall be represented by a single person for dealing with the Company and Custodian. Unit rights may not be exercised unless the said conditions have been met. An investor or successor may not request that the Fund be liquidated or divided. No annual general meetings of unitholders shall be held. The Fund Management Company draws investors’ attention to the fact that any investor shall have the chance to fully exercise his/her investor rights in a direct way, with regard to the Fund, only if the investor himself/herself is included in his/her name in the register of the Fund's Unitholders. Where an investor places in the Fund via an intermediary who is investing in the Fund in his name but on behalf of the investor, some rights attached to the quality of Unitholder shall not be necessarily exercised by the investor in a direct way with respect to the Fund. It is recommended to the investor to get informed on his/her rights.

8. Unit classes The Board may decide to issue different classes of Units within each Sub-fund. No Unit certificates shall be issued to investors. The types of Units have different distribution policy, fee rate, and exchange rate risk hedging or unhedging policy, depending on subscription methods or on the type of investors. The table in the specific appendix provides details of the differences between the various types of Units. Supplementary information on the type of Units hedged against exchange rate risk In terms of hedging against exchange rate risk, we may classify the different classes of Units as follows:

1. Classes which seek to minimise the impact of the exchange rate fluctuations between the reference currency of the Unit class and the reference currency of the Sub-fund (“HEDGED”);

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2. Classes seeking to reduce or eliminate exposure to exchange rate fluctuations between the reference currency of the Unit class and another preset currency correlated with currencies in which securities in the portfolio are denominated. All managed assets in the class (100%”) shall be hedged systematically by said hedging operations (“CROSS HEDGED);

3. Classes which do not seek to minimise the impact of the exchange rate fluctuations between the

reference currency of the Unit class and the reference currency of the Sub-fund (“NON HEDGED”). The types of hedging for every Unit (HEDGED, CROSS HEDGED or NON HEDGED) are indicated in the appendix of the Sub-funds. Even though the hedged Unit classes (listed in 1. above) seek to protect their investors against losses due to adverse exchange rate fluctuations, holding said Units may also limit investors’ advantages in case of favourable exchange rate fluctuations. Investors should note that Unit classes hedged against exchange rate risk do not completely eliminate such risk and do not provide specific hedging, and that investors may thus be exposed to other currencies. When the underlying currency of assets in this class is closely linked to another currency and direct hedging is impossible or deemed uneconomical (point 2. above), cross-hedging will be used by entering into forward contracts and will be completed systematically. For this class, the hedged exchange rate risk shall be the risk of the exchange rate between the class reference currency and the predetermined currency; provided, however, that the risk of exchange rate between the other currencies in which the portfolio securities are denominated and the predetermined currency shall not be hedged. A tolerance threshold shall be applied so as to make sure that any over-hedged position does not exceed 105% of the net asset value of the hedged Unit class in question and that any under-hedged position does not fall below 95% of the net asset value of the hedged Unit class in question. The net asset value of hedged Unit classes is not necessarily developed in the same way as that of Unit classes not hedged against exchange rate risk. Investors are notified that the use of exchange rate hedging transactions may cause expenses to be charged to the hedged Unit class in question. That being said, there is no legal separation of the obligation in the liabilities between the Unit classes of the same Sub-fund. When a Sub-fund comprises more than one class of Units hedged against exchange rate risk, there is a risk that holders of other classes of Units in a Sub-fund are exposed in certain circumstances to liability arising from exposure to exchange rate risk for a Unit class hedged against exchange rate risk, which has an negative impact on the net asset value. The updated list of Unit classes subject to contagion risk may be obtained upon request to the Management Company.

9. Unit Issue and Subscription Price Subscription applications for the various Sub-funds may be made on all Luxembourg business days via the Transfer Agent. The Company may appoint other institutions to receive subscriptions to be transmitted to the Custodian for execution. The initial subscription period for each new Sub-fund and the respective subscription price per Unit, as well as any subscription fees are indicated in the individual Sub-fund factsheets. Subscription lists are closed at the times and dates indicated in the specific appendix of this Prospectus. Investors shall receive written confirmation of their investment. Sub-fund Unit subscriptions may be made in two ways – detailed in the Sub-fund factsheets, namely: • LUMP SUM SUBSCRIPTION

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Subscription to the Units of all Sub-funds may be made via a single payment. The subscription methods, including a minimum subscription amount, are set out in each Sub-fund factsheet.

• MULTI-ANNUAL INVESTMENT Subscriptions may also be made via a multi-annual investment plan, in accordance with local laws and practices in force within the country of distribution. In this case, the Distributor may:

- offer multi-annual investment plans, indicating the conditions and methods including the initial down-payment and subsequent payments; within this frame, the minimum amounts to be paid upon subscription of Units could be different from those indicated in the factsheet of the Sub-fund;

- offer different multi-annual investment plan conditions, in terms of subscription and conversion fees, from those generally used upon purchase and conversion of Units, as shown in the specific appendix of this Prospectus.

The conditions of the investment plans may be obtained from all distributors and the Transfer Agent. Subscription charges will be withdrawn exclusively from payments made.

It should be noted that multi-annual investment plan subscriptions are not available in Luxembourg.

Units are issued by the Transfer Agent subject to payment of the subscription price to the Custodian. Units are also available in fractions of up to three decimals.

Payment of subscribed Units shall be made via bank transfer to the Custodian in the base currency of the Sub-fund within 5 business days of the Valuation Date used to establish the applicable subscription price.

At the end of the initial subscription phase, the amount to be paid shall be established based on the net asset value of the Sub-fund in question, as described in chapter 12, calculated on the day after the application is received by the Transfer Agent, plus any subscription fees and charges, whose rates are indicated in the Sub-fund factsheets, as in the specific appendix of the Prospectus.

Any subscription taxes, fees and charges are payable by the investor.

The Company may suspend or discontinue the issue of Sub-fund Units at any time. The Company and/or Transfer Agent may, at their discretion and without justification: - reject any subscription of Units; - redeem the Units subscribed or held unlawfully at any time.

As described in Chapter 13, in the event that the net asset value calculation is suspended, subscriptions shall also cease. When the Company decides to resume issues following suspension for an undefined period, all pending subscriptions will be processed at the first net asset value subsequent to suspension. As an anti-money laundering measure, the application form of each Investor must be accompanied by a copy (certified by one of the following authorities: embassy or consulate, notary or police officer) of the subscriber’s identity card, in the case of a natural person, or the Articles of Association and an extract from the business register in the case of legal entities, in the following cases: - direct subscription via the Fund; - in the case of subscription through a financial sector professional, resident in a country which

imposes an identification obligation not equivalent to that required under Luxembourg law for the prevention of money laundering;

- in the case of subscription through an intermediary, i.e. a subsidiary or branch whose parent company is subject to an identification obligation equivalent to that required under Luxembourg law for the prevention of money laundering and where the law applicable to the parent company does not impose an equivalent obligation on its subsidiaries or branches.

It is generally accepted that professionals of the financial sector resident in a country which has ratified the conclusions of the FATF (Financial Action Task Force) report are subject to identification obligations equivalent to that required by Luxembourg law and regulations.

The Company may, at its own discretion and in accordance with the Management Regulations of the Fund, accept listed securities which have a similar investment policy to the Fund itself, in exchange for subscription payment if deemed in the interest of Unitholders.

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For all securities accepted as payment for subscription, the Custodian shall request an assessment report from the Auditor citing the quantity, denomination and valuation method adopted for such securities. The report shall also establish the total value of the securities expressed in the initial currency and that of the Fund. The applicable exchange rate shall be the last available rate. After having been examined and signed by the Auditor, the report shall be deposited with the Registrar of the District Court of Luxembourg, where it may be freely consulted. Securities accepted as payment for subscription are valued at the last available market purchase price of the work day to which the net asset value used for subscription refers. The Company reserves the right to refuse securities in exchange for subscription payment, at its own discretion and without justification.

10. Unit Redemption Holders of Units may request redemption thereof in cash at any time. Redemption applications must be sent to the Transfer Agent or other institutions appointed for this purpose. Valid applications must specify the class of Unit to be redeemed. Excluding exceptional circumstances, for example in the case that the calculation of the asset value is suspended along with subscriptions or redemptions, as described in chapter 13 below, the Transfer Agent shall accept redemption applications received on each Luxembourg bank business day. Redemption lists are closed at the times and dates indicated in Appendix of this Prospectus. The amount of redemption shall be established based on the net asset value of the Sub-fund calculated as described in chapter 12, minus any charges and expenses, at the rates established in the individual Sub-fund factsheets and in appendix of this Prospectus. Redemption will be performed by the Custodian, in the base currency of the Sub-fund, within five Luxembourg bank business days following calculation of the net asset value applicable to establish the amount of redemption. The Custodian is not obliged to undertake redemptions in the event that legislation, particularly international regulations in force related to foreign exchange rates or events beyond its control, such as strikes, prevent it from transferring or paying the redemption price. The Company shall ensure that under normal circumstances the Fund has sufficient liquidity to allow it to fulfil redemption requests in due time. Redemption prices may be reduced by any applicable fees, charges, taxes and stamp duties. The redemption price may be equal to, higher or lower than the subscription price, depending on the trend of the net asset value of the Sub-fund in question. In the event that the amount of the redemption application – direct or referred to conversion between Sub-funds – is equal to or 5% higher than the net asset value of the Sub-fund in question and if the Company deems that the redemption application may be detrimental to the interests of the other Unitholders, the Company may, if necessary, and in agreement with the Main Distributor, reserve the right to suspend the redemption application. Nonetheless, the redemption application may in the meantime be revoked by the investor, free of charge.

11. Conversions Investors may request conversion of all or some Units held into other Units of the same class but of a different Sub-fund, provided that this is not expressly prohibited by the regulations of each Sub-fund.

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Conversion applications shall be addressed to the Transfer Agent, or other designated institutions, via a binding conversion application. The Company may permit conversion from and to different classes of units, all fees and expenses being due. Conversion lists are closed at the times and dates indicated in Appendix of this Prospectus. All or some of the Units of a given Sub-fund (the “Original Sub-fund”) are converted into Units of another Sub-fund (the “Target Sub-fund”) according to the following formula:

A = B x C x E D Where: A: the number of Units in the Target Sub-fund to which the Investor shall become entitled; B: the number of Units in the Original Sub-fund to be converted; C: the net asset value per Unit of the Original Sub-fund established on the day indicated in

Appendix of this Prospectus; D: the net asset value per Unit of the Target Sub-fund established on the day indicated in

Appendix of this Prospectus; and E: the currency conversion rate, between the currency of the Original Sub-fund and that of the

Target Sub-fund, applicable at the time of the transaction.

Following conversion, investors shall be informed by the Transfer Agent and/or Distributor, or, where applicable, by the representing Agent in the country of distribution, of the number and price of Target Sub-fund Units obtained upon conversion.

Conversion of the Units of one Sub-fund into those of another shall be carried out by applying all costs and expenses due, the amount and/or rate of which are set out in the Sub-fund factsheets and in Appendix of this Prospectus.

The Company reserves the right to change the frequency of conversions or make amendments thereto.

12. Net asset value

For each Sub-fund, the net asset value of each Unit is established by the Administrative Agent, according to a timescale set in the Sub-fund factsheets. In the event that the day stated in the Sub-fund factsheet is not a full bank business day, or, where applicable, is a day on which the Luxembourg stock markets are closed, the net asset value per Unit of the Sub-fund shall be calculated on the next available full bank business day or, where applicable, the following day on which National Stock Exchanges are open.

The net asset value per Unit is expressed in the reference currency of the Unit class in question.

The net asset value per Unit is obtained by dividing the net asset value of the Unit class in question by the number of outstanding Units in that class. Definition of assets The Company shall establish total net assets for each Sub-fund.

The Fund constitutes a single and same legal entity. Nonetheless, it should be noted that in the relations between Unitholders, each Sub-fund is considered as a separate entity composed of a group of separate assets with their own objectives and represented by one or more separate classes of Units. Moreover, with regard to third parties, and more precisely in regard to the Fund’s creditors, each Sub-fund shall bear exclusive responsibility for its own commitments. In order to establish the different groups of net assets: a) proceeds from the issue of Units of a given Sub-fund shall be attributed, in the Fund’s accounts, to the said

Sub-fund, and the receivables, payables, income and expenses associated with that Sub-fund shall be attributed thereto;

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b) when a receivable entry derives from an asset, the receivable shall be attributed to the same Sub-fund as the asset (in the accounts of the Fund), and, upon each new measurement of a receivable entry, the increase or reduction in value shall be attributed to the Sub-fund to which it pertains;

c) when the Fund maintains a commitment related to the asset of a given Sub-fund or to a transaction performed in relation to the asset of a given Sub-fund, the commitment shall be attributed to that Sub-fund;

d) in the event that an asset or commitment of the Fund may not be attributed to a given Sub-fund, they shall be attributed to all Sub-funds, in proportion to the net value of the Units issued in the various Sub-funds.

Asset valuation The valuation of assets and commitments of each Sub-fund shall be carried out as follows: a) the value of liquidity held in cash or in deposits, directly payable securities and payables, advance

payments, dividends and interest due but not yet collected, shall be composed of the par value of the said entries, unless it is unlikely that they will be actually received. In this case, the value shall be established by subtracting the amount deemed appropriate to reflect the real value of the assets;

b) the valuation of transferable securities and money market instruments listed or traded on the stock market or other regulated market which operates regularly, is recognised and open to the public, is based on the price on the last business day (“Valuation Date”) prior to the Valuation Day (as defined in chapter 5 of the Management Regulations). If a transferable security or money market instrument is traded on more than one market, the valuation is based on the last known price on the Valuation Date of the main market of the said security or instrument. If the last known price on the Valuation Date is not representative, the valuation shall be based on the estimated realisable value, prudentially estimated in good faith;

c) transferable securities and money market instruments not listed or traded on a regulated market which operates regularly, is recognised and open to the public, will be valued based on the estimated realisable value, prudentially estimated in good faith;

d) futures and options are valued based on closing prices on the relative market the previous day. The prices used are liquidation prices on futures markets;

e) Units of Undertakings for Collective Investment are valued based on their last net asset value available; f) swaps are valued at their fair value based on the last known closing price of the underlying security; g) futures contracts are valued based on closure prices on the respective market the previous day. The

Company may use different valuation criteria based on the average price of the same previous day for sub-funds valued on a monthly basis and under certain market conditions;

h) assets expressed in a currency other than the base currency of the Sub-fund in question shall be converted at the last available exchange rate;

i) all other assets shall be valued based on the estimated realisable value, which must be estimated with due care and in good faith.

The Company is authorised to use any other generally accepted valuation criteria deemed appropriate for the Fund’s assets, in the event that it is impossible or inappropriate to use the valuation methods considered above due to special or exceptional circumstances or events, in order to obtain a fair value of the Fund’s assets. Adequate funds will be provided to hedge the expenses borne by the Fund. Off-balance sheet expenses will also be considered, according to fair and prudential criteria.

13. Suspension of net asset value calculation, subscriptions, redemptions and conversions 1. The Company Board is authorised to temporarily suspend calculation of the net asset value per Unit of

one or more Sub-funds, as well as subscriptions, redemptions and conversion of Units of the said Sub-funds, in the following cases:

- when any of the stock exchanges on which any significant portion of the assets of one or more Sub-funds is invested is closed for periods other than ordinary holidays, or trading is restricted or suspended;

- during any period when any market of a currency in which a significant portion of assets of one or more Sub-funds is denominated is closed for periods other than ordinary holidays, or trading is restricted or suspended;

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- during any breakdown in, or restriction of the use of the means of communication or calculation normally used to determine the value of the assets of one or more of the Sub-funds, or when, for whatever reason, the value of any Fund’s assets may not be determined with the required speed and accuracy;

- when exchange rate or capital transfer restrictions prevent the execution of transactions on behalf of the Fund, or when buy or sell transactions on behalf of the Fund may not be performed at normal exchange rates;

- when political, economic, military or monetary events beyond the control, responsibility and power of the Fund prevent it from accessing the assets of one or more Sub-funds and determining the value of the assets of one or more Sub-funds in a normal and reasonable manner;

- during any period when any breakdown occurs in the IT means normally used to determine the net asset value per Unit of one or more Sub-funds;

- following any decision to liquidate or close the Fund; - in case of Feeder Sub-fund, at any time when the calculation of the net asset value of the Master

UCITS is suspended. 2. Any suspension of the calculation of the net asset value per Unit of one or more Sub-funds shall be

published via all appropriate means. In the event that the calculation is suspended, the Company will notify Unitholders having submitted subscription or redemption applications for the Units or Sub-funds in question. Investors may revoke their subscription or redemption applications during the suspension period.

3. In exceptional circumstances that may adversely affect the interests of the Unitholders, or in the event of many requests of redemption of the Units of a given Sub-fund, the Company Board of Directors reserves the right to establish the value of the said Sub-fund only after having sold the required assets on behalf of the Sub-fund.

In cases 2 and 3 above, pending subscription and redemption applications shall be executed based on the first net asset value thus calculated.

14. Income distribution

The Company decides how to use the Fund's results, according to the accounts of every reference period.

It may decide to either capitalise the income or distribute all or part of the income.

The distributed amounts shall be detailed in the Fund's periodic financial reports.

The Company reserves the right to keep funds available to compensate for any capital loss.

The Company Board of Directors may distribute an interim dividend, within the limits provided by law.

Therefore, the Company shall either distribute investment returns, or decide to distribute the capital, within the limits provided by law.

Dividends and interim dividends shall be paid at a time and place established by the Board of Directors of the Company, net of any tax, if due.

Dividends and interim dividends distributed but not collected by the investor within five years of payment date are no longer payable to investor and shall be paid to the corresponding Sub-fund.

Dividends held by the Custodian on behalf of investors in the respective Sub-funds shall not bear any interest.

15. Costs borne by the Fund

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Each Sub-fund reimburses the Company in the form of management fees and additional variable management fees indicated in the individual Sub-fund factsheets (adjusted for subscriptions and reimbursements made for each Unit class), as well as a maximum annual fee of 0.33% of the net assets of the Fund for the administrative and organisational services the Company and BNP Paribas Securities Services, Luxembourg branch rendered to the Fund. The Company may partly reassign the management fees it receives to sub-managers, distributors or other service providers. The Custodian shall be notified of changes to the above-mentioned fees and the Prospectus and key information for the investor updated accordingly. The following expenses shall be borne by the Fund and Sub-funds: - set up fees, including expenses for its establishment, listing on the stock exchange, where applicable, and

authorisation from the competent authorities, costs for preparation, translation, printing and distribution of reports, as well as any other document required by law and regulations in force in the countries where the Fund is traded;

- registration tax calculated and payable on a quarterly basis on the net asset value determined at the end of each quarter, as well as amounts due to supervisory authorities;

- any annual stock exchange fees; - all taxes and duties due on Fund earnings; - trading costs, fees and expenses deriving from transactions involving the securities portfolio; - for Sub-funds that invest in units of other UCITS and/or UCIs, the expenses on the assets of the UCITS

and/or other UCIs invested in are borne indirectly by the sub-funds. The maximum fixed management fee applied to “target” fund shall be 2.5% per annum of the net assets of the “target” fund, in addition to a management fee applicable to each Sub-fund according to the diagram reported in Appendix of this Prospectus;

- extraordinary costs arising in particular from assessments or procedures aimed at protecting the interest of investors;

- expenses for the publication of the net asset value and all notices to investors, permitted in application of chapter 17 of this Prospectus;

- auditor fees; - any Investment Advisor/Manager fees; - fees paid to the Custodian amounting to an aggregate average fee of 0.070% of the Fund’s net assets: this

fee may differ from that effectively applied to each individual sub-fund according to its net assets; - any distribution and marketing costs (including those for the Fund promotion advertising campaigns) up to

a monthly maximum of 0.053% of net assets; - publication costs for notices to Unitholders in the countries where the Fund is traded. All the above mentioned general expenses borne by the Fund are preliminarily deducted from the Fund’s current earnings and, if these prove insufficient, from realised capital gains and, where necessary, from Fund assets. - for D-AZ FUND (DIS) Units of the "Bond Target 2022 Equity Options" Sub-fund, an investment fee is

applied and charged at once at the closing date of the Investment Period (as will be defined by the Company) at a rate of 3% on globally collected capital. It will be then amortised in a straight line over 4 years by means of a payable amount on net total value of said units at each net asset value calculation date;

- for D-AZ FUND (DIS) Units of the "Bond Target 2023 Equity Options" Sub-fund, an investment fee is applied and charged at once at the closing date of the Investment Period (as will be defined by the Company) at a rate of 3.50% on globally collected capital. It will be then amortised in a straight line over 4

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years by means of a payable amount on net total value of said units at each net asset value calculation date;

- for D-AZ FUND (DIS) Units of the "Bond Target 2020 Equity Options" Sub-fund, an investment fee is applied and charged at once at the closing date of the Investment Period (as will be defined by the Company) at a rate of 3.50% on globally collected capital. It will be then amortised in a straight line over 4 years by means of a payable amount on net total value of said units at each net asset value calculation date;

- for D-AZ FUND (DIS) Units of the "Bond Target 2021 Equity Options" Sub-fund, an investment fee is applied and charged at once at the closing date of the Investment Period (as will be defined by the Company) at a rate of 3.50% on globally collected capital. It will be then amortised in a straight line over 4 years by means of a payable amount on net total value of said units at each net asset value calculation date.

The following expenses shall be borne by the Company: - expenses for the day to day running of its operations; - auditor fees.

16. Financial year The Company’s financial year, which coincides with the closure of the Fund’s accounts, ends on 31 December of each year.

17. Financial statements and reports

The Fund shall publish annual financial statements, for the year ended on 31 December of each year, and an interim report, as at 30 June of each year. The annual financial statements contain the Fund’s and Company’s accounts audited by authorised Auditors.

Pursuant to Circular 14/592, the annual report also includes information concerning (i) the underlying exposure reached through derivative financial instruments, (ii) the identity of the counterparty/ies to these derivative financial transactions, (iii) the type and amount of financial guarantees received by the Fund in order to reduce the counterparty risk, for the whole period under analysis, as well as any direct and indirect operating costs and fees. The interim financial statements contain the unaudited Fund's accounts.

The reports shall be available to Unitholders at the registered offices of the Company and Custodian.

The net asset value of each Sub-fund Unit is available in Luxembourg at the registered offices of the Company, the Custodian, the Administrative Agent and is also published on the website at www.azimut.it

Any changes to the Management Regulations are filed with the Business Register and included in the RESA as indicated in chapter 18.

18. Management regulations

The rights and duties of Unitholders as well as those of the Company and Custodian are established by the Management Regulations.

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The Company may, subject to legally required authorisation under 2010 Law, amend the Management Regulations. Any changes to the Management Regulations shall be filed with the Business Register and be included in the RESA and may be published in the financial press in the country/ies where the Company authorises the public sale of Fund Units. Such changes shall enter into effect on the day the amendments are filed with the Business Register.

19. Fund Duration – Fund Liquidation and closure or merger of Sub-funds Fund liquidation The fund exists for an unlimited period, and without restriction as far as its assets are concerned.

By means of a prior written notice of three months starting from the first publication, as detailed below, the Company may, in agreement with the Custodian and provided that the investors’ interests are protected, decide to liquidate the Fund and divide its net assets amongst all the investors.

Moreover, the Fund shall be liquidated: a) in the event that the Company or Custodian are not replaced within 2 months of termination of their

functions; b) in the event that the Company goes bankrupt; c) in the event that the Fund’s net assets are reduced, for over six months, to less than a fourth of the

minimum legal capital of EUR 1,250,000. In the event that it decides to liquidate the Fund, the Company must convert the Fund’s assets into cash in the best interest of investors and instruct the Custodian to distribute the net cash generated by its liquidation – after having deducted liquidation costs – amongst the investors and in proportion to their rights.

In the event of liquidation of the Fund, the decision must be published in the RESA.

As soon as the decision to liquidate the Fund has been taken, subscription, redemption and conversion of Units shall cease with immediate effect.

The amount not distributed upon liquidation completion shall be deposited with the Bank for deposits (CDC), on behalf of eligible investors, for as long as this is legally required. Closure or merger of Sub-funds - Closure of Sub-funds

The Board may decide to close a Sub-fund in the event that its assets do not reach, or do fall below, a level that the Board deems to make its management overly difficult, or for any other reason it deems valid.

Holders of Units of the Sub-fund in question shall be notified of the decision and method of closure by reception of a notice.

The net assets of the Sub-fund in question shall be divided amongst the remaining investors in the Sub-fund. The amounts not distributed upon Sub-fund liquidation completion shall be deposited with the Bank for deposits, on behalf of eligible investors, for as long as is legally required.

- Merger of Sub-funds The Company may, in the above mentioned circumstances (see “Closure of Sub-funds”) decide to merge a Sub-fund with one or more Sub-funds of the Fund or into another Luxembourg undertaking for collective investment or foreign undertaking for collective investment, pursuant to 2010 Law provisions.

Holders of Units in the Sub-funds in question may, for a period established by the Board – which may be no less than one month and shall be indicated in the notice about merger transactions – request that their Units be redeemed free of charge. The merger will involve all investors who fail to request the redemption of Units by the deadline and Units issued shall then automatically be converted into the Units of the Sub-fund created by the merger.

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- Merger, liquidation or division of the feeder-master structures If a sub-fund qualifies as a feeder UCITS of another UCITS or one of its sub-funds, the merger, division or liquidation of its Master UCITS shall trigger the liquidation of the feeder sub-fund, unless the Board of Directors decides, pursuant to article 16 of the 2010 Law, to replace the Master UCITS with another Master UCITS or to convert the Sub-fund into a Standard UCITS Sub-fund.

20. Legal action All disputes regarding enforcement of the Management Regulations, the French text of which is the authentic valid version, shall be governed by Luxembourg or Italian law.

21. Prescription The time limit for legal action taken by Unitholders against the Company or Custodian is five years from the event that generated the claimed right(s).

22. Fiscal aspects

Tax treatment The Fund is subject to Luxembourg law. Any investors in Fund Units shall personally inform themselves of all applicable laws and regulations regarding their respective citizenship or residence and subscription, ownership, redemption or conversion of Units. Pursuant to current legislation in the Grand Duchy of Luxembourg, the Fund and Unitholders not domiciled, resident or registered permanently in the Grand Duchy of Luxembourg are not subject to any Luxembourg taxation, deducted at source or otherwise, on income, capital gain or assets. Under law of 18 December 2015 adopting directive 2011/16/EU concerning mandatory and automatic exchange of information for fiscal purposes (the Directive on Administrative Cooperation or "DAC") and the new OECD Common Reporting Standards ("CRS") ("CAD provision"), as of 1 January 2016, except for Austria that enjoyed provisional regulations until 1 January 2017, financial institutions of an EU Member State or territory adhering to the CRS are required to provide the tax authorities of other EU Member States and territories adhering to the CRS all information concerning payment of interest, dividends and similar income, but also account balances and returns from sale of financial assets, as defined in the DAC Directive and the CRS, for account holders residing or being established in a Member State of the EU and in certain dependent territories associated with the EU Member States or in countries which have implemented the CRS into their domestic law. The payment of interest and other income from shares will fall into the scope of the DAC Directive and the CRS and will therefore be subject to reporting obligations. Investors should consult their own tax advisors regarding the application of the DAC Directive and the CRS to their particular situation. The net assets of the Fund’s Sub-funds are nevertheless subject to a Luxembourg tax: a registration tax of 0.05% per annum (with the exception of Sub-funds eligible for a reduced tax rate of 0.01% as indicated, where applicable, in the Sub-fund factsheets). It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested. Registration tax is payable on a quarterly basis and is calculated based on total net assets of the Sub-fund considered at the end of each quarter.

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FATCA In this section, the defined terms have the meanings ascribed to them in the Model I IGA, unless otherwise stated in this section or in the prospectus.

FATCA added to the Internal Revenue Code of the United States of America a new chapter on “taxes ensuring the disclosure of information about some foreign accounts” and requires foreign financial institutions ("FFI"), like the Fund, to provide the US Internal Revenue Service ("IRS") with information on the direct or indirect financial holdings of US persons (as defined by FATCA) they hold on accounts or non-US entities belonging to US persons. An FFI which fails to disclose required details will face a punitive 30% withholding tax on some income or “withholdable payments” derived from US sources (including dividends and interest) as well as on gross proceeds such as sales proceeds and returns of principal derived from stocks and debt obligations generating US source dividends or interest. On 24 July 2015, Luxembourg parliament passed a law implementing Model I IGA (the "Model I IGA") signed on 28 March 2014 by and between Luxembourg and the USA ("Lux IGA") for FATCA application in Luxembourg. The Fund opted for the status as sponsored entity so that its sponsoring entity will register the Fund with the IRS. This recording will be effective at the latest date between 31 December 2015 or 90 days after the identification of a US Reportable Account or of a Recalcitrant Account in the Fund. Meanwhile, the Fund should not be registered with the IRS and should not be subject to the reporting obligations. The Fund sponsoring entity is the Management Company, which registered with the IRS for this purpose. The sponsoring entity will have the task of performing, in the name of the Fund, all registration, due diligence, statements and withholding obligations applicable under the FATCA. Therefore investors in the Fund acknowledge and accept that the information on financial accounts held by US persons or by non-US entities belonging to US persons are reported to the Luxembourg tax authorities, which in turn will transmit said information to the IRS. However the Fund's ability to avoid the withholding taxes under FATCA may not be within its control and may, in some cases, depend on the actions of an intermediary or other withholding agents in the chain of custody, or on the FATCA status of the investors or their beneficial owners. Any withholding tax imposed on the Fund would reduce the amount of cash available to pay all of its investors and said withholding tax could affect specific Sub-funds in a non-proportional manner. Finally, it is recalled that the Fund will remain ultimately responsible for any non-compliance in connection with FATCA due to its sponsoring entity. There can be no assurance that a distribution made by the Fund or that assets held by the Fund will not be subject to withholding. Accordingly, all prospective investors including non-U.S. prospective investors should consult their own tax advisors about whether any distributions by the Fund may be subject to withholding.

23. Benchmark Regulation In accordance with Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the "Benchmark Regulation") of supervised entities (such as UCITS management companies) may apply European Union indices if they have

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been provided by an administrator registered with the ESMA’s register of benchmark administrators and indices in accordance with the Benchmark Regulation (the "Register"). Administrators based in the European Union, whose reference indices or benchmarks are applied by the Fund, must request authorisation or registration as administrators under the Benchmark Regulation prior to 1 January 2020. Administrators based in third party countries, whose indices are applied by the Fund, benefit from temporary provisions under the Benchmark Regulation, and, consequently, may not be listed on the Register. The Management Company has an up-to-date plan describing the measures to be taken if the benchmark used is modified or is no longer provided. This plan may be obtained free of charge at the registered office of the Company. The investment manager is independent from the body that publishes the index. In the event that the index is no longer published or no longer available, administrators shall assess whether it is suitable or not to keep the current structure of the Sub-fund until the index is once again available or whether it is better to modify its objective to apply another index with characteristics similar to the current index. As of the date of this Prospectus, administrators whose indices are applied by the Fund and who are on the Register are listed below: Benchmark administrator Index

Bloomberg Index Services Limited Bloomberg Barclays EuroAgg Total Return Index Value Unhedged EUR

CETIP S.A. CDI European Money Markets Institute Euribor 3 months FTSE International Limited FTSE All World High Dividend Yield Total Return Index EUR FTSE International Limited FTSE MIB Index FTSE International Limited FTSE Italia Mid Cap Index

FTSE International Limited FTSE MTS Eurozone Government Bond 3-5Y Index (Ex-CNO Etrix)

IHS Markit Benchmark Administration Limited iBoxx € Non-Financials Subordinated Total Return Index

MSCI Limited MSCI World Net Total Return Local Index MSCI Limited MSCI World Net Total Return EUR Index MSCI Limited MSCI World Energy Sector Local MSCI Limited MSCI World Materials Sector Local MSCI Limited MSCI World Industrials Local MSCI Limited MSCI World Consumer Discretionary Index MSCI Limited MSCI World Information Technology Index MSCI Limited MSCI World Health Care Local

MSCI Limited MSCI World Telecommunication Services Sector A Net Total Return USD Index

S&P Dow Jones Indices S&P Municipal Bond Intermediate Index TR STOXX AG STOXX Europe 600 (Net Return) EUR ICE Benchmark Administration Libor USD 3 months ICE Benchmark Administration Libor JPY 3 months

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24. Data processing

In accordance with applicable Luxembourg laws and regulations on data protection, including, but not limited to, Regulation no. 2016/679 of 27 April 2016 on the protection of natural persons regarding personal data processing and the free circulation of said data (“GDPR”), as may be amended from time to time (hereinafter referred to as the “Law on data protection”), the Management Company, in its capacity as data controller (the “Data Controller”) must process any information regarding Investors (the “Personal data”) and any other related natural persons (collectively referred to as the “Data subjects”) within the context of investments in the Fund. In this section, the term “processing” is used based on the meaning established by the Law on data protection.

The detailed information on data protection can be found in the information sheet and at http://www.azimut-group.com/international-presence/az-fund-management/privacynotice.pdf, namely information on Personal data processed by Data controller and their delegates, their service providers or representatives including (but not limited to) the Domiciliation agent, the Auditor, the Distributors, the other bodies directly or indirectly linked with the Company, and any other third party processing Personal Data to provide their services to the Management Company, in their capacity as Sub-contractors (hereinafter, collectively referred to as the “Sub-contractors”), the purpose and legal basis of the processing, recipients, warranties applicable to Personal data transfer outside the European Union and the rights of Data subjects, in accordance with Data protection laws and/or applicable directives, regulations, recommendations, circulars or terms and conditions issued by any competent local or European public authority, such as the Luxembourg data protection authority ("Commission Nationale pour la Protection des Données" – "CNPD") or the European Data Protection Board (including right to access, rectify or erase their Personal data, a request for restricted processing or related items, the right to portability, and the right to withdraw their consent after granting it, etc.) and the ways of enforcing them. The full privacy policy is also available upon request by contacting the company at [email protected]. In order to enforce their rights and/or withdraw their consent concerning any specific processing to which they is has consented, the Data subjects may contact the Management Company at the following address: AZ Fund management S.A., 35, avenue Monterey, L-2163 Luxembourg, Grand Duchy of Luxembourg. In addition to the rights listed above, in the event that a Data subject deems the Company to be non-compliant with the Law on data protection, or not to provide sufficient assurance of the protection of their Personal data, said Data subject may lodge a complaint to the competent supervisory Authority, e.g. in Luxembourg, the Commission Nationale pour la Protection des Données (CNPD).

25. Document registration The following documents: - Company’s Articles of Association; - key information for the investor and this Prospectus; - Management Regulations; - the Custodian and Paying Agent Agreement between the Company and Custodian; - the Investment Advisory Agreement(s) between the Company and the Investment Advisor(s); - the Administrative Agent Agreement between the Company and BNP Paribas Securities Services,

Luxembourg branch, - the Investment Manager Agreement(s) signed by the Company and the Investment Manager(s); - the Fund’s financial statements and reports; and - a list of the funds managed by the Company,

http://www.azimut-group.com/international-presence/az-fund-management




mailto:[email protected]

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shall be available at the registered office of the Company, where investors may obtain free copies of the Management Regulations, this Prospectus, key information for the investor, regular financial statements and reports and the list of the funds managed by the Company.

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SECTION A RESERVED TO RETAIL INVESTORS .

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APPENDIX I: SUB-FUND FACTSHEETS

The name of each Sub-fund is preceded by "AZ Fund 1".

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“European Trend” Sub-fund factsheet General Information

Investment policy: the Sub-fund shall invest in equity or equity-related securities (particularly convertible bonds, warrants and investment certificates), in bonds and money market instruments with a view to enhancing the value of its assets in the medium/long term. The Company may, at its own discretion and with a view to pursuing flexible management of the Sub-fund, invest from 0 to 100% of its net assets in equity and may, therefore, sell this component in favour of partial or total investment in bonds and money market instruments. Investments shall be made as follows: • mainly in the financial instruments of European issuers and – up to a maximum of 30% of net assets – in those of non-European issuers; • mainly in financial instruments listed on European stock exchanges and other regulated markets and – up to a maximum of 30% of net assets – on all world stock exchanges and regulated markets. No more than 30% of the Sub-fund’s net assets may be invested in financial instruments denominated in non-European currencies. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference

currency Type of hedging Hedging against exchange

rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED

Hedging against EUR

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC) and B-AZ FUND (ACC)

• USD 1,500 for Units of class A-AZ FUND USD (ACC)

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(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus).

The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due.

Frequency of net asset value calculation: the NAV will be calculated daily.

Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units:

- maximum of 4% of the par value of the plan for the subscriptions via multi-annual investment plans;

- in addition to a brokerage fee of 1% of the amount invested to be paid upon subscription, maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus).

Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed).

Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

Distribution policy: The Sub-fund shall apply an income capitalisation approach.

Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.

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Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“AZ Equity – America” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium to long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies listed on North American markets. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets, directly or indirectly, in shares and other similar securities issued by companies with their registered office and/or which carry out a predominant part of their economic activities in the United States. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices. The Sub-fund may also invest:

- up to 20% of its net assets in debt securities rated investment grade and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries and/or companies headquartered in developed countries;

- up to 10% of its net assets in shares and other similar securities issued by companies with their head office and/or which carry out a predominant part of their economic activities in Canada;

- up to 10% of its net assets in shares and other similar securities issued by companies with their head office and/or which carry out a predominant part of their economic activities outside the United States and Canada, including emerging countries;

- up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 10% of its net assets in cash.

The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on equities and equity equivalent securities, equity indices, including, among others, E-mini S&P500 Future, and NASDAQ 100 E-Mini futures.

The Sub-fund will not invest in asset-backed securities (ABS) and mortgage-backed securities (MBS), contingent convertible bonds (CoCo bonds) or securities that are in default or in difficulty at the time of purchase.

CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage effect lower than 200%, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:

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Sub-fund Unit Reference currency

Type of hedging Hedging against exchange rate risk

A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 1,500 for Units of class A-AZ FUND (ACC) and B-AZ FUND (ACC) • USD 1,500 for Units of class A-AZ FUND USD (ACC)

(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due.



- maximum of 4% of the par value of the plan for all subscriptions via multi-annual investment plans; - in addition to a brokerage fee of 1% of the amount invested to be paid upon subscription, maximum of 2% of

the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed).


Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for the Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period.

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During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:

• 3 months Libor USD + 4% for NON HEDGED Units • 3 months Libor USD + 4% + Hedging costs for HEDGED Units

“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.




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“AZ Equity – Japan” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies which have their registered office and/or which carry out a predominant part of their business activities in Japan. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets, directly or indirectly, in shares and other equity-related securities of companies that have their registered office in Japan and are listed on the Japanese stock exchanges and/or on any other stock exchange in the world. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices and other similar securities. The Sub-fund may also invest:

- up to 20% of its net assets in debt securities rated investment grade and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries;

- up to 20% of its net assets in debt securities issued by companies having their head office in Japan; - up to 10% of its net assets in units of UCITS and/or of other UCIs; and - up to 10% of its net assets in cash.

The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices and other similar securities, including, among others, Nikkei 225 Future and The Tokyo Price Index (Topix) Future. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Japanese Yen and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type) LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage effect lower than 150 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: JPY

Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No

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A-AZ FUND (ACC) [hedged]

EUR HEDGED Hedging against Japanese Yen

B-AZ FUND (ACC) [hedged]

EUR HEDGED Hedging against Japanese Yen

A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND JPY (ACC) JPY NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period1. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing Units of class A-AZ FUND (DIS), B-AZ FUND (DIS), Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC), A-AZ FUND (ACC) [hedged], B-AZ FUND (ACC) [hedged] and A-AZ FUND JPY (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 1,500 for the Units A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ

FUND (ACC) [hedged], B-AZ FUND (ACC) [hedged] • USD 1,500 for Units of class A-AZ FUND USD (ACC)

(1) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.

http://www.azimut.it/

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• JPY 150,000 for the Units A-AZ FUND JPY (ACC) (except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 or JPY 50,000 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 or JPY 150,000 depending on type of Units subscribed), including all subscription fees and costs, where due.


Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC), AZ FUND (ACC) [hedged] and A-AZ FUND JPY (ACC) Units:


the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC), B-AZ FUND (DIS), B-AZ FUND (ACC) [hedged] Units: a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 or JPY 50,000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

MANAGERS: under the relevant agreements, with reference to specific geographical and territorial experiences, the following are appointed as Managers of this Sub-fund

• AXA Investment Managers UK Ltd. was incorporated as a Limited Company under the laws of the United Kingdom. Its registered office is located at 7 Newgate Street, London, EC1A 7NX;

• J.P. Morgan Asset Management UK Ltd. was incorporated as a Limited Company under the laws of the United Kingdom. Its registered office is located at 60 Victoria Embankment, London, EC4Y 0JP;

Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. An additional variable management fee will be charged for all classes of Units . The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration.

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The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:

• 3 months Libor JPY + 4% for NON-HEDGED Units • 3 months Libor JPY + 4% + Hedging costs for HEDGED Units

“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. Each Manager receives a fee for the management services on behalf of the Sub-fund. These fees are paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Each Manager receives a fee for the management services on behalf of the Sub-fund. These fees are paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS) Units, and shall reinvest revenues of Unitholders of the same class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), AZ FUND (ACC) [hedged], B-AZ FUND (ACC) [hedged] and A-AZ FUND JPY (ACC) Units. Revenue will be distributed yearly, according to the following period: 1 January - 31 December.



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“AZ Equity – Asean” Sub-fund factsheet General Information

Investment policy: the Sub-fund is Feeder of the "AZ Multi Asset – AZ Equity - Asean" (the Master). The Feeder shall permanently invest at least 85% of its assets in said Master. The aim, investment policy and risk profile of the Feeder and Master Sub-funds are similar. The investment performance of the Feeder and Master is similar except for the Feeder's assets which are not invested in the Master. The Feeder may invest up to 15% of its assets in one or more of the following items: ancillary liquid assets (to a limited extent), pursuant to article 41(2) paragraph 2 of the 2010 Law, and financial instruments which may be used only for hedging purposes in accordance with the relevant provisions of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law. "AZ Multi Asset-AZ Equity – Asean" is a Sub-fund, registered in Luxembourg, of AZ Multi Asset, an undertaking for collective investment in transferable securities governed by Part I of the 2010 Law. The investment policy of the Master Sub-fund aims at increasing long-term capital growth. INVESTMENT TARGET: The investment objective of the Master is to achieve long-term capital growth. INVESTMENT STRATEGY: The Master seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies which have their head office and/or which carry out a predominant part of their business activities in countries belonging to the Association of South-East Asian Nations (ASEAN). INVESTMENT POLICY AND RESTRICTIONS: The Master invests at least 80% of its net assets, directly or indirectly, in shares and other equity-related securities issued by companies that have their head office in the ASEAN countries and are listed on a stock exchange of the ASEAN countries and/or on any other stock exchange in the world. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices and other similar securities. The Master may also invest:

- up to 20% of its net assets in shares and other similar securities issued by companies with their head office in countries that are not ASEAN countries;

- up to 20% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of the ASEAN countries and/or companies headquartered in the ASEAN countries without rating constraints;


The Master uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices and other similar securities, including, among others, SGX MSCI Indonesia Index Future, SGX MCSI Singapore Index Future, SET50 Index Futures, SGX MSCI Emerging Markets and MSCI Emerging Markets Asia Index Futures. The Master shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for

67

investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type) LEVERAGE EFFECT: The Sub-fund, just like the Master, aims at maintaining a leverage effect lower than 200%, calculated on the total of all derivative financial instruments' notional amounts. Investors may obtain free copies of the Prospectus of the Master in French at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Further information on the Master and on the contracts regulating the Master-Feeder relationship are available in French, at the registered office of the Company as well as at the dealers in the countries where this Sub-fund is traded. The investment of Feeder into Master Sub-fund does not involve any special tax consequences. The Feeder shall not bear any direct cost for investing in the Master. The Master Sub-fund in which the Feeder invests shall not bear any costs excluding the service fees that are provided in the Prospectus of the Master. Investment information: the Feeder and the Master are managed by the same Company. As such, and in accordance with the provisions of the 2010 Law, the Company also established specific internal policies relating to the Master and Feeder. These policies describe in particular (i) the basis for redemption, subscription, reimbursement of units as well as their suspension, and (ii) how to coordinate the calendar for the calculation and publication of the net asset value. The policies regulating the relationship between the Feeder and the Master are freely available to investors, in French, at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:

Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC) and B-AZ FUND (ACC) • USD 1,500 for Units of class A-AZ FUND USD (ACC)

(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units:

68

- maximum of 3% of the par value of the investment plan for all subscriptions via multi-annual investment plans; - maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum

subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: AZ Investment Management Singapore Ltd has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZ Investment Management Singapore Ltd is a Limited Company established under Singapore law. Its registered office is at 2 9 Temasek Boulevard, Suntec Tower 2, #44-02, Singapore 038989 Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Libor USD + 5% for NON HEDGED Units • 3 months Libor USD + 5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period.

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“Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

Distribution policy: The Sub-fund shall apply an income capitalisation approach. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

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“Asset Dynamic” factsheet General Information

Investment policy: the Sub-fund shall invest in units of UCITS and/or of other UCIs. In particular, the Sub-fund shall typically invest in units of Undertakings for collective investments in transferable securities and/or of other Undertakings for collective investment which, in the Company’s view, will benefit from current or future political, social and economic issues/trends. The Sub-fund is not subject to any restrictions in terms of asset class, countries, geographical areas, sectors, currencies, issuer’s rating. Each of the Undertakings for collective investments in transferable securities and/or of other Undertakings for collective investment may invest in a wide range of products, including shares, bonds, money instruments and securities representing ownership and commodities. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.





- maximum of 4% of the par value of the plan for the subscriptions via multi-annual investment plans; - in addition to a brokerage fee of 1% of the amount invested to be paid upon subscription, maximum of 2% of

the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg.

71

For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed).



Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus.

For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.



Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

72

“Small Cap Europe” Sub-fund factsheet General Information

Investment policy: the Sub-fund shall invest in units of UCITS and/or of other UCIs. In particular, the Sub-fund will normally invest in units of Undertakings for collective investments in transferable securities and/or of other Undertakings for collective investment which specialise in investment in the equity securities of small and mid-cap issuing companies with registered offices in European countries or which carry out a significant part of their business in such countries. However, it shall also be possible to invest, to a limited extent (up to 45% of net assets), in units of Undertakings for collective investments in transferable securities and/or of other Undertakings for collective investment specialising in investment in the equity securities of small and mid-cap issuing companies which have registered offices or carry out a significant part of their business anywhere in the world. The Undertakings for collective investments in transferable securities and/or the other Undertakings for collective investment being invested in may be denominated in any currency. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC)

USD HEDGED Hedging against EUR





Subscriptions and Redemptions:

73

A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units: - maximum of 3% of the par value of the plan for all subscriptions via multi-annual investment plans; - maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum

subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.


Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.




74

“Emerging Market Europe” Sub-fund factsheet General Information

Investment policy: the Sub-fund shall invest in units of UCITS and/or of other UCIs. In particular, the Sub-fund shall normally invest in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings specialising in investment in equity securities of issuers which have registered offices in emerging European countries or carry out a significant part of their business in such countries. The emerging European countries include all those outside the 15-member European Union (i.e. Portugal, Spain, France, Italy, Greece, Austria, Germany, Luxembourg, Belgium, The Netherlands, Denmark, Sweden, Finland, United Kingdom, and Republic of Ireland). The Sub-fund may also invest in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings which invest mainly in European countries within the CIS (Commonwealth of Independent States), i.e. Moldova, Ukraine and Russia. The Undertakings for collective investments in transferable securities and/or the other Undertakings for collective investment being invested in may be denominated in any currency. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose.

Risk factors: investors in the Sub-fund should be aware of the high risks involved, especially the uncertainties related to the economic and social policy of emerging countries as well as stringency in the management of companies whose issues will be acquired in the portfolios of the UCITS and/or other UCIs subject to investment. This can inevitably generate high volatility in terms of the securities, markets and currencies involved and, consequently, the net asset value of the Sub-fund. Moreover, generally speaking, insolvency cannot be ruled out for the issuers involved. Finally, where the Undertakings for collective investments in transferable securities and/or other Collective investment undertakings being invested in do not hedge against exchange rate risks, there may also be a risk associated with investment of a portion of assets in currencies other than the Euro. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



75





- maximum of 3% of the par value of the plan for all subscriptions via multi-annual investment plans; - maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum

subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.


Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.

76


77

“AZ Equity – Emerging Latin America” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies which have their head office and/or which carry out a predominant part of their business activities in the Latin American region. In the context of the Sub-fund’s investment policy, the Latin American region includes all Central and South American countries, including Mexico. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets, directly or indirectly, in shares and other equity-related securities issued by companies that have their head office and/or which carry out a predominant part of their economic activities in the Latin American region, listed on a stock exchange in the Latin American region and/or any other stock exchange in the world. Indirect exposure is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices. The Sub-fund may also invest:

− Up to 20% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of the Latin American region and/or companies headquartered in the Latin American region, without rating constraints;

− Up to 10% of its net assets in units of UCITS and/or of other UCIs; − Up to 10% of its net assets in cash.

The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices, including, among others, Ibovespa Futures and S&P/BMV IPC. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No

78

A-AZ FUND USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: AZ QUEST INVESTIMENTOS LTDA has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZ QUEST INVESTIMENTOS LTDA was established as a limited liability company under Brazilian law, having its registered office at Rua Leopoldo Couto de Magalhaes Junior, no 758 – cj. 152 Itaim Bibi – CEP 04542-000, São Paulo, Brazil. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration.

79

The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

80

“Emerging Market Asia” Sub-fund factsheet General Information

Investment policy: the Sub-fund shall invest in units of UCITS and/or of other UCIs. In particular, the Sub-fund shall normally invest mainly in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings specialising in the investment in the equity securities of issuing companies which have registered offices in emerging Asian countries (including Singapore, South Korea and Hong Kong) or that carry out a significant part of their business in such countries. The Undertakings for collective investments in transferable securities and/or the other Undertakings for collective investment being invested in may be denominated in any currency. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. Risk factors: investors in the Sub-fund should be aware of the high risks involved, especially the uncertainties related to the economic and social policy of emerging countries as well as stringency in the management of companies whose issues will be acquired in the portfolios of the UCITS and/or other UCIs subject to investment. This can inevitably generate high volatility in terms of the securities, markets and currencies involved and, consequently, the net asset value of the Sub-fund. Moreover, generally speaking, insolvency cannot be ruled out for the issuers involved. Finally, where the Undertakings for collective investments in transferable securities and/or other Collective investment undertakings being invested in do not hedge against exchange rate risks, there may also be a risk associated with investment of a portion of assets in currencies other than the Euro. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:



81


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

82

“AZ Bond – Emerging Local Currency FoF” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund is a fund of funds and seeks to achieve its investment objective by actively managing a portfolio that is composed mainly of units of UCITS and/or other UCIs investing in debt securities issued by issuers from emerging countries, denominated in their respective local currencies. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 50% and 100% of its net assets in units of UCITS and/or other UCIs. The Sub-fund invests indirectly through units of UCITS and/or other UCIs at least 70% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies with their head office in an emerging country, expressed in their respective local currencies, without rating constraints. The Sub-fund may also invest:

− Up to 30% of its net assets, directly or indirectly, through units in UCITS and/or other UCIs, in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies of developed countries, and/or companies with their head office in a developed country, without rating constraints;

− Up to 20% of its net assets in units of UCITS and/or of other UCIs managed by the Company; − Up to 10% of its net assets in cash.

The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for interest rate differences (CFDs), debt securities and ETFs investing in debt securities including, among others, JP Morgan EM Local Government Bond, Bloomberg Barclays Emerging Markets Local Currency Liquid Government Index and US10YR Note Future. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 300 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (Euro Hedged - ACC)

EUR CROSS HEDGED Hedging against USD

B-AZ FUND (Euro Hedged - EUR CROSS HEDGED Hedging against USD

83

ACC) A-AZ FUND (Euro Hedged - DIS)


B-AZ FUND (Euro Hedged - DIS)


A-AZ FUND (Euro non Hedged - ACC)

EUR NON HEDGED No

B-AZ FUND (Euro non Hedged - ACC)

EUR NON HEDGED No

A-AZ FUND (Euro non Hedged - DIS)

EUR NON HEDGED No

B-AZ FUND (Euro non Hedged - DIS)

EUR NON HEDGED No

A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No Specific Features of the “Servizio distribuzione proventi ” (PROCEEDS DISTRIBUTION SERVICE): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period2. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end.



84

The "Servizio distribuzione e proventi" is not available to investors subscribing Units of class A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS) and A-AZ FUND USD (DIS). Unit class: the Sub-fund will issue Units of class A-AZ FUND (Euro Hedged - ACC); B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS),

• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - ACC), A-AZ FUND (Euro non Hedged - DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - DIS) Units, a Redemption Fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets.

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An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:

• 3 months Euribor + 2.5% for NON HEDGED Units • 3 months Euribor + 2.5% + Hedging costs for HEDGED Units

“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to Holders of class A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS), A-AZ FUND USD (DIS) Units, and shall reinvest revenue of Holders of class A-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.

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Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

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“AZ Equity – Global Emerging FoF” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund is a fund of funds and seeks to achieve its investment objective by actively managing a portfolio composed mainly of units of UCITS and/or other UCIs whose objective is to invest in shares and other equity-related securities issued by companies that have their head office in emerging countries or are listed on a stock exchange in emerging countries. As part of the Sub-fund’s investment policy, emerging countries include, among others, China, Hong Kong, South Korea, Taiwan, India, Singapore, Brazil, South Africa, Russia, Thailand, Mexico, Malaysia, Indonesia, the Philippines, Poland and Turkey. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 50% and 100% of its net assets in units of UCITS and/or other UCIs. The Sub-fund indirectly invests at least 80% of its net assets in shares and other equity-related securities issued by companies that have their head office in emerging countries and are listed on an emerging country stock exchange and/or any other stock exchange worldwide. Indirect exposure is obtained by investing in units of UCITS and/or other UCIs or equity derivative financial instruments and other similar securities and/or equity indices. The Sub-fund may also invest:

− Up to 20% of its net assets, directly or indirectly, through units in UCITS and/or other UCIs, in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies worldwide, including emerging countries, and/or companies worldwide, including emerging countries, without rating constraints;


The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities and equity indices including, among others, MSCI Emerging Markets Index, MSCI Emerging Markets Asia Index, Hang Seng Index, Hang Seng China Enterprises Index (HSCEI), SGX Nifty 50 Index, SGX FTSE China A50 Index and Ibovespa Index. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 300%, calculated on the total of all derivative financial instruments' notional amounts.

Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:

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rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period3. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS) and B-AZ FUND (DIS) Units. Unit class: the Sub-fund shall issue Units of the following classes: A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) • USD 1,500 for Units of class A-AZ FUND USD (ACC)

(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. (3) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS) and A-AZ FUND USD (ACC):

- maximum of 3% of the par value of the investment plan for all subscriptions via multi-annual investment plans; - maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum

subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. An additional variable management fee will be charged for all classes of Units . The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


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“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: The Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS) and B-AZ FUND (DIS) units, and shall reinvest revenue for holders of the same classes A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC). Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

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“AZ Bond – Emerging Hard Currency FoF” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund is a fund of funds and seeks to achieve its investment objective by actively managing a portfolio that is composed mainly of units of UCITS and/or other UCIs investing in debt securities issued by issuers from emerging countries, denominated in US dollars or any other developed country currency. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 50% and 100% of its net assets in units of UCITS and/or other UCIs. The Sub-fund indirectly invests through units of UCITS and/or other UCIs at least 70% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies having their head office in an emerging country, denominated in US dollars or any other currency of developed countries, without rating constraints. The Sub-fund may also invest:

− Up to 30% of its net assets, directly or indirectly, through units in UCITS and/or other UCIs, in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies of developed countries, and/or companies with their head office in a developed country, without rating constraints;


The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, J.P. Morgan EMBI Global Core, J.P. Morgan CEMBI Broad Index, Ultra Long Term U.S. Treasury Bond Future and US10YR Note Future. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 300%, calculated on the total of all derivative financial instruments' notional amounts.

Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk

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A-AZ FUND (Euro Hedged - ACC)

EUR HEDGED

Hedging against USD

B-AZ FUND (Euro Hedged - ACC)

EUR HEDGED Hedging against USD

A-AZ FUND (Euro Hedged - DIS)


B-AZ FUND (Euro Hedged - DIS)

EUR HEDGED

Hedging against USD


EUR NON HEDGED No


EUR NON HEDGED No


EUR NON HEDGED No


EUR NON HEDGED No

A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period4. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi.



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This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione e proventi" is not available to investors subscribing Units of class A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS) and A-AZ FUND USD (DIS). Unit class: the Sub-fund will issue Units of class A-AZ FUND (Euro Hedged - ACC); B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS);



subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - DIS) Units, a Redemption Fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus.

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For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Libor USD + 2.5% for NON HEDGED Units • 3 months Libor USD + 2.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

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Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS), A-AZ FUND USD (DIS) Units, and shall reinvest revenue of Unitholders of the same class A-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

96

"Global Emerging Markets Dividend" factsheet5 General Information

Investment policy: with a view to enhancing the value of its assets in the medium/long term, the Sub-fund shall normally invest mainly in equity financial instruments and/or equity-related securities (e.g. warrants and ADR), including units of UCI/UCITS specialised in investment in equity financial instruments having "attractive" dividend perspectives and issued by companies whose head office is in one of the emerging countries or carrying out a significant part of their business in these countries. In particular, the Sub-fund shall focus its selection as follows:

• by reference to investments in equity financial instruments and/or equivalent securities, financial instruments that usually pay higher dividends than the market average;

• by reference to investments in units of UCI/UCITS specialised in investing in equity financial instruments, units of UCI/UCITS managed by "high dividend", "minimum volatility", "minimum variance" and/or equivalent strategies In order to carry out a flexible management of the Sub-fund, the Management Company may invest up to 100% of the net assets of the Sub-fund both in units of UCI/UCITS specialised in investing in equity financial instruments of emerging countries, as well as in equivalent securities (e.g., warrants, investment certificates and ADR). The Sub-fund is not subject to any restrictions in terms of geographical area, sector, currency of denomination and/or of issuer's capitalisation. The local currency component of the portfolio will normally not be hedged. The Sub-fund may hold liquid assets. The Sub-fund may also use derivative financial instruments – not only (i) on the above-mentioned instruments for direct investment purposes, but also for hedging purposes (against market, securities, interest rate, exchange rate, credit and other risks). For the purposes of effective portfolio management, derivative financial instruments can be used to a residual extent. The Sub-fund will aim at maintaining a leverage lower than 300%, calculated on the total of all derivative instruments' notional amounts. Leverage will be achieved mainly through futures, swaps, options and forward contracts. Risk Factors: investors in the Sub-fund should be aware of the high risks involved, especially the uncertainties related to the economic and social policy of emerging countries as well as stringency in the management of Issuer whose financial instruments will be acquired, including those within the portfolio of the Undertakings for collective investments in transferable securities and/or other Collective investment undertakings subject to investment. This can inevitably generate high volatility in terms of the value of financial instruments and currencies involved and, consequently, the net asset value of the Sub-fund. Moreover, generally speaking, insolvency cannot be ruled out for the issuers involved from time to time. Finally, a risk will also remain referred to the investment of assets in local currencies of emerging markets. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:

Sub-fund Unit Reference Hedging against exchange 5 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Equity – Global Emerging FoF. Until December, 31st 2019 the receiving Sub-Fund is denominated Global Emerging Markets Equity.

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currency rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period6. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS) and B-AZ FUND (DIS), (6) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of the Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment advisors: under the relevant agreements, with reference to specific geographical and territorial experiences, the following are appointed as Investment Advisors of this Sub-fund:

• AZIMUT PORTFÖY YÖNETIMI A.Ş. is a Joint Stock Company established under Turkish law and with registered office at Büyükdere Caddesi Kempinski Residences Astoria No: 127 A Blok Kat: 4 Esentepe / Şişli, Istanbul (Turkey)

• AZ INVESTMENT MANAGEMENT SINGAPORE LTD is a Limited Company established under Singapore law. Its registered office is at 9 Temasek Boulevard, Suntec Tower 2, #44-02, Singapore 038989.

• AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

• AZ QUEST INVESTIMENTOS Ltda is a Limited Company established under Brazilian law with registered office at R. Leopoldo Couto Magalhães Júnior, 758 - Itaim Bibi, São Paulo - SP.

• AZIMUT (DIFC) LTD was established as a limited liability company under Dubai law, having its registered office in Central Parks Towers, Unit 45, Flr. 16, Dubai International Financial Centre, PO Box 506944, Dubai, United Arab Emirates Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis.

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Every Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. These fees are paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

100

“Convertible Bond” Sub-fund factsheet General Information

Investment policy: With a view to enhancing the value of its assets in the medium/long term, the Sub-fund will invest primarily - that is to say between 50% and 100% of its net assets - in units of UCITS and/or other UCI oriented to convertible bonds investments.

With a view to pursuing flexible management of the Sub-fund, the Company may also invest up to 50% of net assets of the Sub-fund:

• in government and supranational bonds; • in units of UCITS and/or other UCI oriented towards investment in government and/or supranational

securities; • in units of UCITS and/or other UCI oriented towards investment in corporate bonds; • in units of UCITS and/or other UCI oriented towards equity investments; • in equity financial instruments and/or equity-related securities (e.g., warrants and American Depositary

Receipt (ADR)). The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, duration, currencies, issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund may be indirectly exposed through investments in units of UCITS and/or other UCI, in high yield bonds and/or distressed securities. The Sub-fund may also use derivative financial instruments – not only on the above-mentioned instruments for direct investment purposes, but also for hedging purposes (against market, securities, interest rate, exchange rate, credit risks etc.). For the purposes of effective portfolio management, derivative financial instruments can be used to an accessory extent.

The amount of the expected leverage, calculated on the total of all derivative instruments' notional amounts would be 300%.

Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:



rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period24.

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For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units.

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS) and B-AZ FUND (DIS) • USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units: - maximum of 3% of the par value of the plan for subscriptions via multi-annual investment plans; - maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed).

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Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.


103

“AZ Equity – Global Quality” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies worldwide, with a "quality growth" investment style to select securities of companies that the Manager believes have relatively high long-term income growth and above-average profitability. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets in shares and other equity-related securities issued by companies worldwide, including up to 40% of its net assets in emerging countries. The Sub-fund may also invest:

- up to 20% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries;

- up to 20% of its net assets in debt securities issued by companies around the world. - up to 10% of its net assets in units of UCITS and/or of other UCIs; and - up to 10% of its net assets in cash.

The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices and other similar securities, including, among others, E-mini S&P500 Future, NASDAQ 100 E-Mini Futures, E-mini Russell 2000 Index Futures, and participatory notes on shares and other equity-related securities issued by Indian companies. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type) LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200%, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR



rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND TW (ACC) EUR NON HEDGED No B-AZ FUND TW (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND TW USD USD NON HEDGED No

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(ACC) B-AZ FUND TW USD (ACC)

USD NON HEDGED No

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND TW (ACC) and B-AZ FUND TW (ACC)

• USD 1,500 for Units of class A-AZ FUND USD (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) (except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due.




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. A subscription fee is payable for class A-AZ FUND TW (ACC) and A-AZ FUND TW USD (ACC) Units, of maximum 5% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). For B-AZ FUND (ACC), B-AZ FUND TW (ACC) and B-AZ FUND TW USD (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix II of the Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: based on an agreement, Vontobel Asset Management, Inc. has been appointed Manager of the Sub-fund. Vontobel Asset Management, Inc. was incorporated as a Domestic Business Corporation governed by U.S. law. Its registered office is located at 1540 Broadway, 38th Floor, New York, New York 10036.

Management fee and additional variable management fee a management fee is payable for this Sub-fund, as indicated in Appendix II of the Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets.

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For A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units, an additional variable management fee is to be charged. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:

• 3 months Euribor + 4% for NON HEDGED Units • 3 months Euribor + 4% + Hedging costs for HEDGED Units

“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. For AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) Units, there is no additional variable management fee

The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.



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107

“Formula 1 – Alpha Plus” factsheet7 General Information

Investment policy: the Sub-fund will focus investments with a view to generating a positive return on a calendar year basis (from 1 January to 31 December). The Company will invest in equity securities of international issuers. Moreover, the Sub-fund may hold government and supranational bonds in its portfolio as well as corporate bonds with high credit rating (investment grade) and – to a limited extent – below investment grade. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund will use hedging techniques against stock exchange price fluctuations to the extent permitted by law and via techniques authorised by the regulations. Net equity exposure to stock exchanges shall not exceed 30% of total assets. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Company usually hedges exchange rate risks. As the Sub-fund is managed to generate a positive return on a calendar year basis, the management style is dynamic and flexible, with risk control partly based on the performance achieved over the period of time considered. The investment policy is based more on stock-picking and a strategy aimed at identifying the best moment to buy/sell specific portfolio securities than on asset allocation. This management policy may also be characterised by frequent changes in the portfolio. Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently suspend subscriptions (including those deriving from conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. Investors are informed of the decision by means of special notice. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. The gross exposure to the total return swap contracts shall not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 15% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long/short" strategies on financial indices with an exposure to equity and funds. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



7 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Alternative – Capital Enhanced.

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Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period8. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 50,000 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS) and B-AZ FUND (DIS)

• USD 50,000 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of the Prospectus). Frequency of net asset value calculation: N.A.V. shall be calculated on a monthly basis on the first day of each month that is the first full/complete bank business day and is also a day on which national stock exchanges are open in Luxembourg of each calendar month (Valuation Day).



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Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:

- maximum of 4% of the par value of the plan for all subscriptions via multi-annual investment plans; - in addition to a brokerage fee of 1% of the amount invested to be paid upon subscription, a maximum of 2% of

the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of the Prospectus). Multi-annual investment plans described in chapter 9 of the Prospectus are not available in Luxembourg. For class B-AZ FUND (ACC) and B-AZ FUND (DIS) Units: a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount to the Sub-fund is EUR 10,000 (or USD 10,000 depending on type of Units subscribed) regardless of the initial minimum subscription amount. Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 of the Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. Distribution Policy: the Sub-fund shall distribute revenue to Holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of Holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Dividends will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“AZ Allocation – Turkey” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by Turkish companies and debt securities issued by Turkish issuers. The Sub-fund actively manages the allocation between shares and other equity-related securities and debt securities, based on the expected risk and return between these two asset classes. Shares and other equity-related securities are the main components of the portfolio. The remaining portion of the portfolio will be invested in debt securities in order to strengthen the overall performance of the Sub-fund. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests directly or indirectly up to 100% of its net assets in shares and other equity-related securities of companies that have their head office and/or conduct a predominant part of their business activities in Turkey, and are listed on the stock exchange in Turkey and/or any other stock exchange worldwide. Indirect exposure is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices. The Sub-fund may invest up to 100% of its net assets in debt securities issued by the Turkish government, supranational institutions or Turkish governmental bodies and/or companies that have their head office and/or that carry out a predominant part of their economic activities in Turkey. The Sub-fund may invest up to 100% of its net assets in debt securities having a sub-investment grade rating. The Sub-fund may also invest:

− up to 25% of its net assets in hybrid, subordinated (other than contingent convertible bonds (CoCo bonds) and/or perpetual bonds issued by financial and non-financial institutions;

− Up to 20% of its net assets in CoCo bonds; − Up to 10% of its net assets in units of UCITS and/or of other UCIs; − Up to 10% of its net assets in securities that are in default or in difficulty at the time of purchase; − Up to 30% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and equity-related securities, equity indices, including, among others, BIST (Borsa Istanbul) 30 Futures. The Sub-fund shall not invest in asset-backed securities (ABSs) or mortgage-backed securities (MBSs). CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts.

Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 11) and 12) of section III, chapter 3, of this Prospectus.

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Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:



rate risk A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period9. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units.



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Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the Prospectus.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS) and B-AZ FUND

(DIS), • USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1, 500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Manager: AZIMUT (DIFC) LTD has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZIMUT (DIFC) LTD was established as a limited liability company under Dubai law, with its registered office in Central Parks Towers, Unit 45, Flr. 16, Dubai International Financial Centre, PO Box 506944, Dubai, United Arab Emirates. Investment Advisor: AZIMUT PORTFÖY A.Ş. has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. Consulting services will be provided directly to AZIMUT (DIFC) LTD (i.e. the Manager). AZIMUT PORTFÖY A.Ş. is a Joint Stock Company established under Turkish law and with registered office at Büyükdere Caddesi Kempinski Residences Astoria No: 127 A Blok Kat: 4 Esentepe / Şişli, Istanbul (Turkey). Management Fee and Additional Variable Management Fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of the Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if

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any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months USD Libor + 2.5% for NON HEDGED Units • 3 months USD Libor + 2.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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"Real Plus" factsheet General Information

INVESTMENT POLICY: with a view to generating a positive return on a calendar year basis (from 1 January to 31 December), the Sub-fund shall mainly invest in short-term Brazilian government bonds and money market instruments, both of these having fixed and floating interest rates. The Sub-fund may invest to an accessory extent in other debt instruments within the limits set by law and the restrictions on investments. Securities will mainly be in Brazilian Real (BRL) and residually in other currencies. Securities shall be mainly traded on the Brazilian market and to a residual extent on other regulated markets. The Sub-fund is not subject to any restrictions in terms of issuer’s rating since the Sub-fund shall mainly invest in investment grade securities. However, it is not excluded that the investment rating may deteriorate, due to political and economic events. The Management Company may, however, also invest in a dynamic and flexible manner in shares or equity-related instruments linked to Brazilian issuers. Furthermore, the Sub-fund may hold liquid assets up to 100% of its net assets. The net exposure to equity markets of equity or equity-related instruments deriving from hedging techniques shall not exceed 10% of the Sub-fund net assets. Equity exposure will be basically hedged by future contracts to limit the volatility deriving from the Brazilian market equity fluctuations. The Sub-fund will use hedging techniques against stock exchange price fluctuations to the extent permitted by law and via techniques authorised by the regulations. As the Sub-fund is managed to generate a positive return on a calendar year basis, the management style is dynamic and flexible, with risk control partly based on the performance achieved over the period of time considered. The investment policy is based more on stock-picking and a strategy aimed at identifying the best moment to buy/sell specific portfolio securities than on asset allocation. This management policy may also be characterised by frequent changes in the portfolio. The Sub-fund may also use derivative financial instruments – not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks etc.). The Company does not usually hedge exchange rate risks. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The amount of the expected leverage, calculated on the total of all derivative instruments' notional amounts would be 200%. EXCHANGE RATE RISK: there may also be a risk associated with the investment of a considerable portion of assets in currencies other than the Euro. GEOPOLITICAL RISK: the investment income may be affected by the risks due to financial and geopolitical situation in the countries where investments are made. EMERGING COUNTRIES' RISK: substantial. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:



rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No

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A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period10. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS) and B-AZ FUND (DIS),

• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may



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also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently not accept any new subscriptions (including those deriving from conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. Investors are informed of the decision by means of special notice. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: AZ QUEST INVESTIMENTOS LTDA has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZ QUEST INVESTIMENTOS LTDA was established as a limited liability company under Brazilian law, having its registered office at Rua Leopoldo Couto de Magalhaes Junior, no 758 – cj. 152 Itaim Bibi – CEP 04542-000, São Paulo, Brazil. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.

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“Equity Options” factsheet11 General Information

Investment policy: the Sub-fund shall invest in equity or equity-related securities (particularly convertible bonds, warrants and investment certificates), in bonds and money market instruments with a view to enhancing the value of its assets in the medium/long term. Global exposure to equity markets – including exposure deriving from the use of derivative financial instruments – will range between 20% and 70% of the Sub-fund net assets and shall be mainly realised through options on stock market indexes, including sector indexes. The Sub-fund may also invest in bond securities and/or money market instruments issued by governments, government agencies, supranational issuers and/or corporate issuers, mainly denominated in Euro and issued in countries belonging to the white list. The Sub-fund is not subject to any restrictions in terms of duration or issuer’s rating since the Sub-fund shall mainly invest in investment grade securities. Furthermore, the Sub-fund may hold liquid assets. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund may also use derivative financial instruments – not only on the above-mentioned instruments for direct investment purposes, but also for hedging purposes (against market, securities, interest rate, exchange rate, credit risks etc.). For the purposes of effective portfolio management, derivative financial instruments can be used to a residual extent. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 300%, calculated on the total of all derivative instruments' notional amounts. The gross exposure to total return swap contracts will not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on financial indices with an exposure to equity. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



11 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund Convertible Bond

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Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called “Servizio distribuzione proventi”. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period24. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units.


• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) • USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units: - maximum of 3% of the par value of the plan for subscriptions via multi-annual investment plans; - maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus).

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Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.


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“Formula 1 - Conservative” factsheet12 General Information

Investment policy: with a view to generating a positive return on a calendar year basis (from 1 January to 31 December), the Sub-fund shall mainly invest in money market instruments and bonds denominated in euros and/or foreign currencies. The Company may, at its own discretion, invest up to 30% of the Sub-fund’s net assets in equity. Investments will be made in all geographical areas. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Company usually hedges exchange rate risks. As the Sub-fund is managed to generate a positive return on a calendar year basis, the management style is dynamic and flexible, with risk control partly based on the performance achieved over the period of time considered. The investment policy is based more on stock-picking and a strategy aimed at identifying the best moment to buy/sell specific portfolio securities than on asset allocation. This management policy may also be characterised by frequent changes in the portfolio. Accordingly, the Company may sell the equity component of the portfolio. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs.

The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. The gross exposure to the total return swap contracts shall not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 15% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long/short" strategies on financial indices with an exposure to equity and funds. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

12 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Allocation – Global Conservative.

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• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), • USD 1,500 for Units of class A-AZ FUND USD (ACC)

(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due.




the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. Distribution policy: The Sub-fund shall apply an income capitalisation approach.

Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“Bond Target 2022 Equity Options” Sub-fund factsheet General Information

Investment policy: up to the "target date" of 31 December 2022, the Sub-fund has the objective to obtain a positive return, normally by means of a main investment in a portfolio including bonds with a residual life in line with the "target date" and secondarily by performing a dynamic management of equity items. The Sub-fund may therefore hold government and supranational bonds in its portfolio as well as corporate bonds with high credit ratings (investment grade) and – to a limited extent – below the investment grade. The Sub-fund is not subject to any restrictions in terms of geographical area or currency denomination. Although under normal market conditions the main investment consists in bonds, global exposure to equity markets – including exposure deriving from the use of derivative financial instruments – could, under particular market conditions, i.e. in case of bullish trend, correspond to a maximum of 80% of the Sub-fund net assets and shall be mainly realised through options on stock market indexes, including sector indexes. In case of bear market trend said exposure will be approximately 20%. The Sub-fund may also invest in high-dividend equity securities and hold liquid assets. Under particular market conditions, The Sub-fund may temporarily hold up to 100% of its own net assets as liquid assets. After reaching the target date, the Sub-fund’s objective shall be to maintain the value of its invested capital. The Manager shall seek to meet this target by investing mainly in money market instruments denominated in Euros, listed or traded on recognised markets or in any other instrument authorised by the laws and regulations in force as established by the Manager. The Sub-fund may also use derivative financial instruments not only (i) for hedging purposes (against market, securities, interest rate, exchange rate, credit and other risks) and (ii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The gross exposure to total return swap contracts will not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on financial indices with an exposure to equity. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. Moreover, after the target date, the Company can set a new target date for the following investments made by the Company. In this scenario, it must be noted that the investment limits indicated above will remain unchanged even after implementation of the investment policy following the setting of the new target date. The new target date will be communicated to investors through a notice in a newspaper published in Luxembourg and in newspapers of the countries where the Sub-fund is traded. This factsheet and the KIID of this Sub-fund shall be updated with the new target date. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:

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rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No D-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period13. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), D-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), D-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. (13) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS)

and D-AZ FUND (DIS) • USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

Including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units, of maximum 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available for the sub-fund Units. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. For D-AZ FUND (DIS) Units: upon redemption/conversion of said Units, a fee is due, calculated on the amount to be redeemed, and will be globally credited to the Sub-fund. This fee will be applied to the amount obtained by multiplying the number of Units to be redeemed (NP) and the "average value of the Investment". Where the "average value of the Investment" is the ratio between

Capital globally collected in the Investment Period (CC) _____________________________________________________________

Number of Units at the closing date of the Investment Period (NPt0)

Period from the closing date of the Investment Period

Maximum fee

one year or less 3.00% 2 years or less 2.25% 3 years or less 1.50% 4 years or less 0.75% After 4 years =

The maximum fee, indicated for every year, will be reduced by the part of the investment fee already amortised at the beginning of the same year for the Units to be redeemed. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

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Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), D-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of Holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.


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“Formula 1 - Absolute” factsheet General Information

Investment policy: with a view to generating a positive return on a calendar year basis (from 1 January to 31 December), the Sub-fund shall invest in equity instruments, using up to 100% of its net assets, and reserves the right to completely sell such investments to invest exclusively in money market instruments and bonds. Investments are mainly made in European, U.S. and Japanese markets. The Sub-fund is not subject to any restrictions in terms of currencies. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Company usually hedges exchange rate risks. As the Sub-fund is managed to generate a positive return on a calendar year basis, the management style is dynamic and flexible, with risk control partly based on the performance achieved over the period of time considered. The investment policy is based more on stock-picking and a strategy aimed at identifying the best moment to buy/sell specific portfolio securities than on asset allocation. This management policy may also be characterised by frequent changes in the portfolio. Accordingly, the Company may sell the equity component of the portfolio. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs.

The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. The gross exposure to the total return swap contracts shall not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 15% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long/short" strategies on financial indices with an exposure to equity and funds. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



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Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period14. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. (14) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) and B-AZ FUND (DIS) Units: a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.


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“AZ Alternative – Global Macro Conservative” Sub-fund factsheet General Information

Investment policy: The Sub-fund is the Feeder of the "AZ Multi Asset – AZ Alternative - Global Macro Conservative" Sub-fund (the Master). The Feeder shall permanently invest at least 85% of its assets in said Master. The aim, investment policy and risk profile of the Feeder and Master Sub-funds are similar. The investment performance of the Feeder and Master is similar except for the Feeder's assets which are not invested in the Master. The Feeder may invest up to 15% of its assets in one or more of the following items: ancillary liquid assets (to a limited extent), pursuant to article 41(2) paragraph 2 of the 2010 Law, and financial instruments which may be used only for hedging purposes in accordance with the relevant

provisions of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law. "AZ Multi Asset – AZ Alternative – Global Macro Conservative" is a Sub-fund, registered in Luxembourg, of AZ Multi Asset, an undertaking for collective investment in transferable securities governed by Part I of the 2010 Law. INVESTMENT TARGET: The investment objective of the Master is to achieve medium-term capital growth. INVESTMENT STRATEGY: The Master is actively managed and aims to achieve its investment objective by investing in transferable securities and derivative financial instruments from around the world (using long and/or short exposures), based on a macroeconomic analysis to determine investment themes and opportunities around the world. INVESTMENT POLICY AND RESTRICTIONS: The Master directly or indirectly invests through (long and/or short) derivative financial instruments in all asset classes: shares and other equity-related securities, debt securities, money market instruments and currencies. The Master also invests in derivative financial instruments on commodity indices. The Master may invest up to 100% of its net assets in debt securities rated investment grade and money market instruments issued by governments, supranational institutions or governmental bodies around the world and/or companies around the world. Investments in debt securities rated sub-investment grade will not exceed 80% of the assets of the Master. A debt security rated sub-investment grade at the time of acquisition that subsequently becomes distressed or in default will not be sold unless, in the opinion of the Manager, it is in the best interests of the Unitholders to do so. The Master may invest up to 75% of its net assets in debt securities and/or shares and other equity-related securities issued by issuers from emerging countries. The Master may invest up to 50% of its net assets in shares and other equity-related securities issued worldwide, including in emerging countries. The Master may invest up to 20% of its net assets directly in Chinese shares (China A-Shares) listed in Mainland China (through the Shanghai-Hong Kong Stock Connect or the Shenzhen-Hong Kong Stock Connect) or in Hong Kong or through American Depositary Receipts (ADR) listed in the United States, and indirectly through futures on equity indices and other similar securities linked to the Chinese stock exchange including, among others, the FTSE CHINA A50 index traded in Singapore. The Master may invest up to 40% of its net assets in commodities through derivatives of commodity indices, units of UCITS (investing in derivative financial instruments whose underlying assets are commodity indices), ETFs (whose underlying assets are eligible) and ETCs (whose underlying assets are eligible) provided that they qualify as securities within the meaning of Article 2 of the Grand-Ducal Regulation of 8 February 2008. The Master may also invest:

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- up to 20% of its net assets in convertible bonds, including up to 10% in contingent convertible bonds

(CoCo bonds); - up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 30% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified. The Master uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or for risk hedging purposes:

• futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices and other similar securities including, among others, E-mini S&P500 Future, NASDAQ 100 E-Mini Futures, S&P MidCap 400 Index Futures, Eurostoxx 50 Future, Nikkei 225 Future, ASX SPI 200 Index Future Contract, Hang Seng Index Future and SGX FTSE China A50 Index Futures;

• futures, options and financial contracts for differences (CFDs) on debt securities including, among others, Bund Future, BTP Future, and US10YR Note Future.

The Master may also invest in total return swap contracts. The gross notional exposure to total return swap contracts shall not exceed 30% of the net asset value of the Master and it is envisaged that this exposure will remain within a range between 0% to 20% of the net asset value of the Master. The underlying strategies of total return swap contracts or financial instruments with similar characteristics are "long only" or "long/short" on financial indices with commodity exposure. The total exposure of the Master to commodities shall not exceed 40% of its net assets. The Master shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty at the time of purchase. All information on the financial indices to which the Master will be exposed via derivative financial instruments is available free of charge at the following link under the Sub-fund section: http://www.azimut.it/prodotti/fondi-azimut/comparti-lussemburghesi/multi-asset. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency future contracts, currency futures and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency future contracts, currency futures and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type) LEVERAGE EFFECT: The Sub-fund, just like the Master, aims at maintaining a leverage effect lower than 300%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 5), 15 and 22) of section III, chapter 3, of this Prospectus. Investors may obtain free copies of the Prospectus of the Master in French at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Further information on the Master and on the contracts regulating the Master-Feeder relationship are available in French, at the registered office of the Company as well as at the dealers in the countries where this Sub-fund is traded. The Feeder shall not bear any direct cost for investing in the Master. The Master Sub-fund in which the Feeder invests shall not bear any cost excluding the service fees or those provided in the Prospectus of the Master. Investment information: the Feeder and the Master are managed by the same Company. As such, and in accordance with the provisions of the 2010 Law, the Company also established specific internal policies relating to the Master and Feeder.

http://www.azimut.it/prodotti/fondi-azimut/comparti-lussemburghesi/multi-asset

http://www.azimut.it/prodotti/fondi-azimut/comparti-lussemburghesi/multi-asset

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These policies describe in particular (i) the basis for redemption, subscription, reimbursement of units as well as their suspension and (ii) how to coordinate the calendar for the calculation and publication of the net asset value. The policies regulating the relationship between the Feeder and the Master are freely available to investors, in French, at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Base currency of the Sub-fund: EUR

Reference currency: the net asset value (“N.A.V.”) per Unit of the Sub-fund shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units:


the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: AZ Investment Management Singapore Ltd has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period. AZ Investment Management Singapore Ltd is a Limited Company established under Singapore law. Its registered office is at 9 Temasek Boulevard, Suntec Tower 2, #44-02, Singapore 038989.

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Investment Advisor: AN ZHONG (AZ) INVESTMENT MANAGEMENT HONG KONG Ltd. has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. Consulting services will be provided directly by AZ Investment Management Singapore Ltd (i.e. the Manager). An Zhong (AZ) Investment Management Hong Kong Ltd. is a Limited Company established under Hong Kong law, with registered office at Suite 2702, 27/F, The Centrium, 60 Wyndham Street, Hong Kong. A management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Euribor + 0.5% for NON HEDGED Units • 3 months Euribor + 0.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

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Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

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“Formula Commodity Trading” factsheet General Information

Investment policy: the Sub-fund is Feeder of the "AZ Multi Asset – Institutional Commodity Trading" Sub-fund (the Master). The Feeder shall permanently invest at least 85% of its assets in said Master. The aim, investment policy and risk profile of the Feeder and Master Sub-funds are similar. The investment performance of the Feeder and Master is similar except for the Feeder's assets which are not invested in the Master. The Feeder may invest up to 15% of its assets in one or more of the following items:

liquid assets, pursuant to article 41 (2) paragraph 2 of the 2010 Law, and financial instruments which may be used only for hedging purposes in accordance with the relevant provisions

of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law "AZ Multi Asset - Institutional Commodity Trading" is a Sub-fund, registered in Luxembourg, of AZ Multi Asset, an undertaking for collective investment in transferable securities governed by Part I of 2010 Law. The investment policy of the Sub-fund aims at increasing capital value. The Master shall mainly invest in financial derivatives on commodities indexes as well as in equity securities of issuers which operate in all commodities sectors, and reserves the right to sell such assets to invest - temporarily and according to market conditions - exclusively in money market and bond instruments. The Sub-fund is not subject to any restrictions in terms of geographical areas, currencies, sectors or issuer's rating. For the purposes of effective portfolio management, the Master may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Master may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Company may sell the equity component of the portfolio. The Master Sub-fund usually may invest no more than 10% of its net assets in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings. The Feeder as well as the Master will aim at maintaining a leverage lower than 300%, calculated on the total of all derivatives' notional amounts. The gross exposure of the Master to the total return swap contracts will not exceed 200% of the net asset value of the Master and it is envisaged that this exposure will remain in the range between 50% and 200% of the net asset value of the Master. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on financial indices with an exposure to commodities. Investors may obtain free copies of the Prospectus of the Master in French at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Further information on the Master and on the contracts regulating the Master-Feeder relationship are available in French, at the registered office of the Company as well as at the dealers in the countries where this Sub-fund is traded. The Feeder shall not bear any direct cost for investing in the Master. The Master Sub-fund in which the Feeder invests shall not bear any cost excluding the service fees or those provided in the Prospectus of the Master.

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Investment information: the Feeder and the Master are managed by the same Company. As such, and in accordance with the provisions of the 2010 Law, the Company also established specific internal policies relating to the Master and Feeder. These policies describe in particular (i) the basis for redemption, subscription, reimbursement of units as well as their suspension and (ii) how to coordinate the calendar for the calculation and publication of the net asset value. The policies regulating the relationship between the Feeder and the Master are freely available to investors, in French, at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Base currency of the Sub-fund: EUR








the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

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Investment Advisor: AN ZHONG (AZ) INVESTMENT MANAGEMENT HONG KONG Ltd. has been appointed as Investment Advisor for this Sub-fund, based on an agreement dated 26 October 2011. An Zhong (AZ) Investment Management Hong Kong Ltd. is a Limited Company established under Hong Kong SAR law, with registered office at Suite 2702, 27/F, The Centrium, 60 Wyndham Street, Hong Kong. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

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“AZ Alternative – Commodity Alpha” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve gradual long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing an alpha strategy, namely to take advantage of differences between spot and future prices, or between future prices at different maturities. On the basis of an alpha strategy, the Sub-fund’s return is not linked to the performance of the commodity. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests in derivative financial instruments on commodity indices - without specific targeted commodity type - with an alpha strategy. The Sub-fund indirectly invests up to 100% of its net assets in commodities through derivative instruments on indices on commodities, UCITS and/or other UCIs, ETFs and/or ETCs provided that they qualify as transferable securities within the meaning of Article 2 of the Grand-Ducal Regulation of 8 February 2008. The Sub-fund may also invest in total return swaps (TRS). Gross exposure to TRS shall not exceed 200% of the Sub-fund’s net assets and it is expected that such exposure will remain in a range between 50% and 200% of the Sub-fund’s net assets. The strategies underlying the TRS are long only or long/short on financial indices with exposure to commodities. The Sub-fund is expected to use only a portion of its assets to achieve the desired exposure to the above-mentioned assets due to the use of derivative financial instruments. As a result, the remaining assets of the Sub-fund may be invested in debt securities, money market instruments and cash in order to provide additional total income over the long term, as detailed below. The Sub-fund may also invest:

− Up to 100% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries and/or companies headquartered in a developed country;

− Up to 50% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies headquartered in an emerging country;

− Up to 50% of its net assets in debt securities with a sub-investment grade rating; − Up to 10% of its net assets in convertible bonds, aside from contingent convertible bonds (CoCo

bonds); − Up to 10% of its net assets in CoCo bonds; − Up to 10% of its net assets in units of UCITS and/or of other UCIs; − Up to 49% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and CFDs on debt securities, including, among others, Bund Future and US10YR Note Future. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts, currency futures and currency options for

139

investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. The net exposure to currencies other than the Sub-fund’s reference currency is limited to 20%. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 300 %, calculated on the total of all derivative financial instruments' notional amounts. All information on the financial indices to which the Sub-fund will be exposed via derivative financial instruments is available free of charge at the following link under the Sub-fund section: http://www.azimut.it/prodotti/fondi-azimut/comparti-lussemburghesi/az-fund-1 Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference





except as required in chapter 9 of the Prospectus for multi-annual investment plans including all subscription fees and costs (please see appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units: - maximum of 3% of the par value of the plan for all subscriptions via multi-annual investment plans; - maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum

subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

http://www.azimut.it/prodotti/fondi-azimut/comparti-lussemburghesi/az-fund-1

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Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. MANAGER: AZ Investment Management Singapore Ltd has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZ Investment Management Singapore Ltd is a Limited Company established under Singapore law. Its registered office is at 2 9 Temasek Boulevard, Suntec Tower 2, #44-02, Singapore 038989 INVESTMENT ADVISOR: AN ZHONG (AZ) INVESTMENT MANAGEMENT HONG KONG Ltd. has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. Consulting services will be provided directly by AZ Investment Management Singapore Ltd. (i.e. the Manager). AN ZHONG (AZ) INVESTMENT MANAGEMENT HONG KONG Ltd. was incorporated as a joint stock company under the laws of Hong Kong SAR, with registered office at Suite 2702, 27/F, The Centrium, 60 Wyndham Street, Hong Kong. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Euribor + 2% for NON HEDGED Units • 3 months Euribor + 2% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch.

141

“Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“Strategic Trend” factsheet General Information

Investment policy: the Sub-fund shall invest in equity, bonds and money market instruments, all of which denominated in Euros and/or in foreign currencies. The portion invested in equity shall not exceed 60% of the Sub-fund’s net assets and may be focused on a limited number of global issuers, mainly of high standing. The Company may also, at its own discretion and with a view to pursuing flexible management of the Sub-fund, sell the equity component of the portfolio or materially reduce the bond component. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The exchange rate risk is usually minimised by hedging. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund aims to enhance the value of its assets in the medium/long term. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC) • USD 1,500 for Units of class A-AZ FUND USD (ACC)

(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions:

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A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units: - maximum of 4% of the par value of the plan for all subscriptions via multi-annual investment plans; - in addition to a brokerage fee of 1% of the amount invested to be paid upon subscription, maximum of 2% of

the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.006% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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"Trend" factsheet General Information

Investment policy: the Sub-fund is Feeder of the "AZ Multi Asset – Institutional T" Sub-fund (the Master). The Feeder shall permanently invest at least 85% of its assets in said Master. The aim, investment policy and risk profile of the Feeder and Master Sub-funds are similar. The investment performance of the Feeder and Master is similar except for the Feeder's assets which are not invested in the Master. The Feeder may invest up to 15% of its assets in one or more of the following items:


of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law. "AZ Multi Asset - Institutional T" is a Sub-fund, registered in Luxembourg, of AZ Multi Asset, an undertaking for collective investment in transferable securities governed by Part I of 2010 Law. The investment policy of the Sub-fund aims at increasing capital value. The Master shall invest in shares and equity-related securities (particularly convertible bonds, warrants and investment certificates), officially listed on the stock exchange or on any other world market, regulated, duly operating, recognised and open to the public, and in bonds and money market instruments with a view to enhancing the value of its assets in the long term. The Company may in fact, at its own discretion and with a view to pursuing flexible management of the Master, invest from 0 to 100% of its net assets in equity securities and may, to the extent permitted, focus its investment choices on a limited number of global issuers, mainly of high standing. The remaining portion of the Master’s net assets shall be invested in bonds and in money market instruments. For the purposes of effective portfolio management, the Master may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. Exchange rate risks will be normally hedged. The Master may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Master Sub-fund usually may invest no more than 10% of its net assets in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Feeder as well as the Master will aim at maintaining a leverage lower than 250%, calculated on the total of all derivatives' notional amounts. Investors may obtain free copies of the Prospectus of the Master in French at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Further information on the Master and on the contracts regulating the Master-Feeder relationship are available in French, at the registered office of the Company as well as at the dealers in the countries where this Sub-fund is traded. The Feeder shall not bear any direct cost for investing in the Master. The Master Sub-fund in which the Feeder invests shall not bear any cost excluding the service fees or those provided in the Prospectus of the Master.

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Investment information: the Feeder and the Master are managed by the same Company. As such, and in accordance with the provisions of the 2010 Law, the Company also established specific internal policies relating to the Master and Feeder. These policies describe in particular (i) the basis for redemption, subscription, reimbursement of units as well as their suspension and (ii) how to coordinate the calendar for the calculation and publication of the net asset value. The policies regulating the relationship between the Feeder and the Master are freely available to investors, in French, at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference

currency Type of hedging Hedging against

exchange rate risk A-AZ FUND (YEN Hedged - ACC)

JPY HEDGED Hedging against EUR

B-AZ FUND (YEN Hedged - ACC)


A-AZ FUND (YEN non Hedged - ACC)

JPY NON HEDGED No

B-AZ FUND (YEN non Hedged - ACC)

JPY NON HEDGED No

A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN non Hedged - ACC) and B-AZ FUND (YEN non Hedged - ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 1,500 for Units of class A-AZ FUND (ACC) and B-AZ FUND (ACC) • USD 1,500 for Units of class A-AZ FUND USD (ACC) • YEN 200,000 for Units of class A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ

FUND (YEN non Hedged - ACC) and B-AZ FUND (YEN non Hedged - ACC) (except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 or YEN 60,000 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 or YEN 200,000 depending on type of Units subscribed), including all subscription fees and costs, where due.

Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND (YEN Hedged - ACC) and A-AZ FUND (YEN non Hedged - ACC):


the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus).

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Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For Units of class B-AZ FUND (ACC), B-AZ FUND (YEN Hedged - ACC) and B-AZ FUND (YEN non Hedged - ACC) a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix II of the Prospectus. The minimum transferable amount is EUR 500 (or USD 500 or YEN 60,000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of the Prospectus. For A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Unit classes it is also foreseen to pay an additional variable management fee amounting to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. For Units of class A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN non Hedged - ACC) and B-AZ FUND (YEN non Hedged - ACC) no additional variable management fee is provided.



Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

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“Italian Trend” factsheet General Information

Investment policy: the Sub-fund is Feeder of the "AZ Multi Asset – Institutional Italy T" Sub-fund (the Master). The Feeder shall permanently invest at least 85% of its assets in said Master.

The aim, investment policy and risk profile of the Feeder and Master Sub-funds are similar. The investment performance of the Feeder and Master is similar except for the Feeder's assets which are not invested in the Master. The Feeder may invest up to 15% of its assets in one or more of the following items:


of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law. "AZ Multi Asset- Institutional Italy T" is a Sub-fund, registered in Luxembourg, of AZ Multi Asset, an undertaking for collective investment in transferable securities governed by Part I of 2010 Law. The investment policy of the Sub-fund aims at increasing capital value. With a view to maximise returns over a medium to long term, the Master shall invest in shares and equity-related securities (including convertible bonds, warrants, investment certificates) mainly issued by Italian issuers and, up to a maximum of 45% of net assets, by other non-Italian issuers. Investments will be made in financial instruments listed on a stock exchange or other regulated market operating regularly, recognised and open to the public in Italy and, up to a maximum of 45% of net assets, on a stock exchange or another regulated market operating regularly, recognised and open to the public in other countries. 45% of the Master’s net assets may be invested in financial instruments denominated in currencies other than the Euro. A large portion of the Master’s assets may nevertheless be invested in bond securities and money market instruments. The Company may, at its own discretion and with a view to pursuing flexible management of the Master, invest from zero to 100% of its net assets in shares, and, while respecting the restrictions, focus its investments in a small number of issuers of mainly high standing. For the purposes of effective portfolio management, the Master may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against stock price fluctuations. The Master may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Master Sub-fund usually may invest no more than 10% of its net assets in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Feeder as well as the Master will aim at maintaining a leverage lower than 200%, calculated on the total of all derivatives' notional amounts.

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Investors may obtain free copies of the Prospectus of the Master in French at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Further information on the Master and on the contracts regulating the Master-Feeder relationship are available in French, at the registered office of the Company as well as at the dealers in the countries where this Sub-fund is traded. The Feeder shall not bear any direct cost for investing in the Master. The Master Sub-fund in which the Feeder invests shall not bear any cost excluding the service fees or those provided in the Prospectus of the Master. Investment information: the Feeder and the Master are managed by the same Company. As such, and in accordance with the provisions of the 2010 Law, the Company also established specific internal policies relating to the Master and Feeder. These policies describe in particular (i) the basis for redemption, subscription, reimbursement of units as well as their suspension and (ii) how to coordinate the calendar for the calculation and publication of the net asset value. The policies regulating the relationship between the Feeder and the Master are freely available to investors, in French, at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period15. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets.



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Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) and B-AZ FUND (DIS) Units: a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

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Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of Holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

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“Active Selection” Sub-fund factsheet General Information

Investment policy: the Sub-fund aims for a positive absolute return using a long/short equity strategy. The investment policy targets a portfolio geared mainly towards financial instruments listed on European regulated equity markets and/or correlated to equity securities (convertible bonds, warrants and derivative financial instruments). Short positions will be taken exclusively via derivative financial instruments. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. In any event the arithmetical sum of the values of the long and short positions in financial instruments and derivatives in which the Sub-fund’s assets are invested may not exceed 200% of the same Sub-fund’s total assets. The Sub-fund may also invest in bond and money market instruments and hold liquid assets. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently suspend subscriptions (including those deriving from conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. Investors are informed of the decision by means of special notice. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:



rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s

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discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period16. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:



- maximum of 4% of the par value of the plan for all subscriptions via multi-annual investment plans;



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- in addition to a brokerage fee of 1% of the amount invested to be paid upon subscription, maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) and B-AZ FUND (DIS) Units: a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 4 May 2009, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of Holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter

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“AZ Alternative – Multistrategy FoF” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term moderate capital growth. INVESTMENT STRATEGY: The Sub-fund is a fund of funds and seeks to achieve its investment objective by actively managing a portfolio that is composed mainly of units of UCITS and/or other UCIs having an investment strategy called "alternative" and/or "uncorrelated" to the main asset classes. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 50% and 100% of its net assets in units of UCITS and/or other UCIs with an investment strategy known as "alternative" and/or "uncorrelated" to the main asset classes; for example, but not exclusively, "Long/Short" (on shares and debt securities), "Market Neutral", "Arbitrage" (on shares and debt securities), "Event Driven", "Global Tactical Asset Allocation", "Global Macro", "Risk Premia", "Risk Parity", "Volatility", "Cat Bond" or "Multi-Strategy" strategies. A description of these strategies is provided hereby:

- Long/short: it’s a strategy that uses both long and short positions (on equity and/or debt securities). Long positions are opened on securities which are expected to appreciate, whilst short positions are taken on securities expected to depreciate.

- Market Neutral: it’s a strategy similar to long/short, but in the case of market neutral strategies, the net exposure (arithmetic sum of long and short positions) is close to zero.

- Arbitrage: it’s a strategy that provides exposure to companies involved in extraordinary corporate finance operations (mainly mergers and acquisitions, but also demergers and any other company reorganization).

- Event driven: An event-driven strategy is a type of investment strategy that attempts to take advantage of temporary stock mispricing, which can occur before or after a corporate event takes place. Examples of corporate events include restructurings, mergers/acquisitions, bankruptcy, spinoffs, takeovers, and others.

- Global Tactical Asset Allocation: it is an investment strategy that attempts to exploit short-term mis-pricings among a global set of assets. The strategy focuses on general movements in the market rather than on performance of individual securities.

- Global Macro: it is an is a top-down investment strategy in which investment decisions are taken primarily on basis of macroeconomic and political trends. Holdings may include long and short positions in various equity, fixed income, currency, commodities, and futures markets.

- Risk premia: it is a strategy that targets absolute returns through long-short positions across various factors and asset classes. A non-exhaustive list of factors is: momentum, growth, value, size, quality.

- Risk parity: it is a quantitative style of portfolio asset allocation that adjusts the proportion of different asset classes in the portfolio based on their riskiness, usually defined by volatility

- Volatility: it is a strategy that attempts to profit from the changes in the price-volatility of an asset. - Cat Bond: are risk-linked debt securities that transfer a specified set of risks from to investors. A cat

bond allows the issuer to receive funding from the bond only if specific conditions occur such as an natural disasters.

- Multistrategy: it’s a strategy that diversify its investments over a variety of different investment strategies. The diversification benefits help to smooth returns, reduce volatility and decrease idiosyncratic risks

The Sub-fund may also invest:

- up to 50% of its net assets in Units of UCITS and/or other UCIs investing in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries and/or companies that have their head office in developed countries;

- up to 30% of its net assets in units of UCITS and/or other UCIs that actively manage the allocation of their assets; for example, but not exclusively, "mixed assets", "allocation", "balanced" or "flexible" funds;

- up to 20% of its net assets in units of UCITS and/or other UCIs investing in shares and other equity-related securities issued by companies throughout the world (including emerging countries);

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- up to 20% of its net assets in Units of UCITS and/or other UCIs investing in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies that have their head office in emerging countries;

- up to 10% of its net assets in units of UCITS and/or other UCIs provided that they qualify as transferable securities within the meaning of Article 41 (1) a) to d) and of Article 2 of the Grand-Ducal Regulation of 8 February 2008 giving exposure to commodities;

- up to 10% of its net assets in units of UCITS and/or of other UCIs investing in "Cat Bonds"; - up to 10% of its net assets in Units of UCITS and/or of other UCIs managed by the Company; - up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or for risk hedging purposes:

- futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, ETFs on equities and/or equity indices, including, among others, E-mini S&P500 Future, Eurostoxx 50 Future, Nikkei 225 Future and MSCI Emerging Markets Index Futures;

- futures, options and CFDs on debt securities and ETFs investing in debt securities, including, among others, Bund Future, BTP Future, US10YR Note Future and Long Gilt Future.

The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR



rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the Company quarterly (in April – July – October - January of each year) makes available to the Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways.

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The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period17. With this in mind, the Management Company shall inform the participants using an appropriate notice on the public website indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for units of the following classes: A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS)

• USD 1,500 for Units of class A-AZ FUND USD (ACC), A-AZ FUND USD (DIS) •

(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for units of type A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS), of the following percentage:


the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg.


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For class B-AZ FUND (ACC) and B-AZ FUND (DIS) Units: a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Manager for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Until 31 March 2020: Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. As of April 1st 2020: An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


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“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: The Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

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“AZ Alternative – Arbitrage” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium-term capital growth. INVESTMENT STRATEGY: The Sub-fund is actively managed and aims for a positive absolute return objective based on a "merger arbitrage" strategy that provides for exposure to companies subject to extraordinary "corporate finance" transactions (mainly mergers and acquisitions but also divisions and other corporate reorganisations) already announced to the market, and transactions not yet completed, but whose possible completion is already known by the markets (through the press and/or specialised economic information sources). Usually, in merger/acquisition transactions, the market price of the "target company" is lower than the price offered by the "purchasing company" (the "premium"). If the transaction is successfully completed, the Sub-fund may earn a profit on the "premium". If the transaction fails, the Sub-fund may suffer a loss. The Sub-fund focuses on the following purchases:

- in the case of take-over bids with 100% liquidity, the purchasing company is committed to acquire the securities of the target company at a certain price (the “price offer”) in cash. Until the transaction is completed, the shares of the "target company" are traded below the price offer. In this case, the Sub-fund takes a long exposure to the shares of the target company, and may make a profit if the transaction is successfully completed;

- in the case of takeover bids with 100% shares, the purchasing company undertakes to acquire the target company's shares by exchanging its own shares for the target company's shares at a pre-defined ratio (the "exchange ratio"). In this case the Sub-fund takes a short exposure to the shares of the purchasing company and a long exposure to the shares of the target company in the same proportion as the exchange ratio and may make a profit if the transactions are successfully carried out;

- in the case of takeover bids with share and/or liquidity exchange, the purchasing company undertakes to acquire the securities of the "target company" by exchanging its own shares plus a certain amount in cash for the shares of the target company at a predefined ratio (the "exchange ratio"). In this case the Sub-fund takes a short exposure to the shares of the purchasing company and a long exposure to the shares of the target company in the same proportion as the exchange ratio and may make a profit if the transactions are successfully carried out.

INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests directly or indirectly in long and/or short positions in shares and other equity-related securities worldwide subject to extraordinary corporate finance transactions, as described above. Indirect exposure to this type of asset will be achieved through the use of derivative financial instruments as detailed in more detail below. The Sub-fund aims to use only a portion of its assets to achieve the desired exposure to the above-mentioned assets through the use of derivative financial instruments. As a result, the remaining portion of the Sub-fund’s assets may be invested in low volatility assets to provide an additional long-term total return such as debt securities, money market instruments and cash, as more fully described below. The Sub-fund may invest:

- up to 80% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries and/or companies headquartered in a developed country;

- up to 10% of its net assets in debt securities with a sub-investment grade rating; - up to 10% of its net assets in units of UCITS and/or other UCIs with an investment strategy consistent

with the Sub-fund’s investment policy; - up to 20% of its net assets in shares and other equity-related securities of companies that are not

involved in extraordinary corporate finance transactions; - up to 10% of its net assets in shares and other equity-related securities of companies in emerging

countries involved in extraordinary corporate finance transactions; - up to 49% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified.

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The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and equity-related securities. The Sub-fund may also use, for hedging purposes and up to a maximum net exposure of 20% of its assets, futures on debt securities, including, among others, Euro-Bobl Future, Euro Schatz Future, Short term Euro-BTP Future, 5-Year US Treasury Note Futures and 2-Year US Treasury Note Futures. The Sub-fund may also invest in total return swap contracts. The gross exposure to total return swap contracts will not exceed 30% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts are the indices of arbitrage strategies (such as Goldman Sachs Global Merger Arbitrage Custom Basket (GSCBMAZ)). The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. The net exposure to currencies other than the Sub-fund’s reference currency is limited to 20% In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 300%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraph 23 of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) per Unit of the Sub-fund shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No A-AZ FUND (ACC) EUR HEDGED Hedging against USD B-AZ FUND (ACC) EUR HEDGED Hedging against USD A-AZ FUND (DIS) EUR HEDGED Hedging against USD B-AZ FUND (DIS) EUR HEDGED Hedging against USD

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways.

163

The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period18. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. (18) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Libor USD + 0.5% for NON HEDGED Units • 3 months Libor USD + 0.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period.

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“Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“Arbitrage Plus” Sub-fund factsheet General Information

Investment policy: the Sub-fund aims for a positive absolute return using a "merger arbitrage" strategy providing for a prevalent investment - up to 100% of its net assets - in equity financial instruments or equity-related securities, convertible bonds, warrants and derivative financial instruments issued by companies under extraordinary corporate finance operations (for instance, mergers, demergers, acquisitions and any other company reorganisation) aimed at taking advantage of the timely completion of these operations. This strategy provides for prevalent investment in "corporate finance" extraordinary operations already announced to the market. The Sub-fund may also invest in operations that are not yet final, but whose possible enforcement is already known by the market (through the press and/or specialised economic information organs). The Company may decide to concentrate the Sub-fund investments in a limited number of "corporate finance" extraordinary transactions - always according to diversification rules and to the extent permitted by the investment restrictions provided in the General Section of the Prospectus and this Sub-fund factsheet. The "merger arbitrage" strategy will be achieved predominantly through the acquisition of long and short positions in securities listed or traded on a regulated market and subject to "corporate finance" extraordinary operations. Long positions will be taken on the securities of the target companies while short positions will be taken on the securities of the acquirer(s). To better explain this strategy, as regards investments in long positions mentioned above, the Sub-fund may participate in take-over bids as follows:

• in the case of take-over bids with 100% liquidity, the purchasing company is committed to acquire the securities of the "target" company exclusively through liquid assets. In this case the Management Company will acquire the "target" company's securities and deliver such securities to the acquiring company, and will receive liquid assets in accordance with the terms laid down in each bid;

• in the case of take-over bids with exchange of shares and/or liquidity, the purchasing company is committed to acquire the securities of the "target" company in part through liquid assets and in part through shares of the acquiring company. In this case the Management Company will acquire the "target" company's securities and deliver them to the acquiring company, and will receive liquid assets in accordance with the terms laid down in each bid. To hedge market risk related to shares of the acquiring company that it will receive at closing of the take-over bid, the Management Company will open short positions through derivative financial instruments related to these shares. Short positions in securities of the acquiring companies will be taken exclusively through derivative financial instruments. If on the market there are not enough transactions in line with the investment strategy described above, the Sub-fund reserves the right, at its sole discretion and with the aim of a flexible management, to invest the remaining net assets of the Sub-fund as follows:

• up to 30% of net assets in units of UCITS and/or other UCIs pursuing investment strategies consistent with the Sub-fund's investment policy;

• up to 40% of net assets in equity financial instruments not subject to "corporate finance" extraordinary transactions already announced to the market;

• up to 100% of net assets in debt securities, money market instruments and liquid assets. The Sub-fund may invest up to 10% of its net assets in contingent convertible bonds. The Sub-fund is not subject to any restrictions in terms of countries, geographical regions, capitalisation and/or commodity sectors of the issuers. Financial instruments will be denominated in the currencies of their reference countries. The possible exchange rate risk will generally be hedged. The Sub-fund may - for its short positions within the frame of its "merger arbitrage" strategy - invest in options, futures, swaps (either traded on a regulated market or OTC). The Sub-fund may also use derivative financial

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instruments – not only (i) on the above-mentioned instruments for direct investment purposes, but also for hedging purposes (against market, securities, interest rate, exchange rate, credit and other risks). Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently suspend subscriptions (including those deriving from conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. The amount of the expected leverage, calculated on the total of all derivative instruments' notional amounts would be 250%. The gross exposure to total return swap contracts will not exceed 25% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on Merger Arbitrage financial indices. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) per Unit of the Sub-fund shall be denominated:



rate risk A-AZ FUND USD (ACC) USD HEDGED

Hedging against EUR

A-AZ FUND USD (DIS) USD HEDGED

Hedging against EUR

A-AZ FUND (ACC) EUR NON HEDGED

No

B-AZ FUND (ACC) EUR NON HEDGED

No

A-AZ FUND (DIS) EUR NON HEDGED

No

B-AZ FUND (DIS) EUR NON HEDGED

No



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For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.


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Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

170

“AZ Equity – Global Growth” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund aims to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies worldwide, using a bottom-up selection procedure that will focus on companies with a higher than average potential growth rate. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets, directly or indirectly in shares and other equity-related securities of companies worldwide. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices. The Sub-fund may also invest:

- up to 30% of its net assets in shares and other equity-related securities issued by companies with their head office and/or which carry out a predominant part of their economic activities in emerging countries;



The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices, including, among others, E-mini S&P500 Future, NASDAQ 100 E-Mini futures and Eurostoxx 50 Future. The Sub-fund will not invest in corporate debt securities, asset-backed securities (ABS) and mortgage-backed securities (MBS), contingent convertible bonds (CoCo bonds) or securities that are in default or in difficulty at the time of purchase.

CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities.

In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage effect lower than 200%, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No

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B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND TW (ACC) EUR NON HEDGED No B-AZ FUND TW (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) [Hedged]


A-AZ FUND TW USD (ACC)

USD NON HEDGED No

B-AZ FUND TW USD (ACC)

USD NON HEDGED No

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) (except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units:


subscriptions (please see Chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. A subscription fee is payable for class A-AZ FUND TW (ACC) and A-AZ FUND TW USD (ACC) Units, of maximum 5% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). For B-AZ FUND (ACC), B-AZ FUND TW (ACC) and B-AZ FUND TW USD (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice.

172

AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani, 4 MILAN -20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units, an additional variable management fee is to be charged. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. For AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) Units, there is no additional variable management fee

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The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

174

175

"Core Brands" Sub-fund factsheet General Information

Investment policy: the Sub-fund aims for a positive absolute return using a long/short equity strategy. The investment policy aims at a portfolio geared mainly towards listed financial instruments and/or correlated to equity securities (convertible bonds, warrants and derivative financial instruments). From a geographical standpoint, the portfolio shall mainly consist of European equity securities, but the Management Company reserves the possibility to invest in world-class equity securities. With regard to the investment sectors, the portfolio will be predominantly oriented to securities related to consumer goods (durable and non-durable goods), media, business services and distribution. The Sub-fund will invest primarily in the consumer goods sector (less cyclical) and in the consumer discretionary sector (more cyclical). Short positions will be taken exclusively on derivative financial instruments. The financial instruments shall be denominated in all currencies. Net exposure of the Sub-fund will mainly range between -20% and 70%. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. In any event the arithmetical sum of the values of the long and short positions in financial instruments and other derivative financial instruments in which the Sub-fund’s assets are invested may not exceed 200% of the same Sub-fund’s net assets. The Sub-fund may also invest in bond and money market instruments and hold liquid assets. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 150%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



176

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period20. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: (20) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


177

A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.006% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

178

“Asset Timing” factsheet General Information

Investment policy: the Sub-fund aims for a positive return on the long term using the widest range of financial instruments available. Portfolio asset allocation is systematically modified by means of a structured model according to the bullish and bearish trends of the key world equity indices: in case of bullish trends of these indices, portfolio shall decrease its equity component and increase exposure on other asset classes (liquidity and bond instruments) and vice-versa in case of bearish market. The Sub-fund may invest indiscriminately in:

• units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings (including ETF) from a minimum of 20% up to 100% of the Sub-fund net assets. Investment in ETC is possible up to 10% of the Sub-fund assets;

• shares and equity-related securities up to 50% of its net assets; • debt securities and/or money market instruments up to 50% of its net assets.

The units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings are selected according to quantitative criteria (for example absolute and relative returns, losses, yield stability) and qualitative criteria (for example analysis of the structure of business, investment process and team management). The overall exposure to the bond component can represent 100% of the Sub-fund. The Sub-fund may invest in securities of issuers with a rating lower than "investment grade" up to 30% and in government securities of emerging countries up to a maximum of 25% of its net assets. The overall exposure to the equity component shall not exceed 80% of the Sub-fund. The Sub-fund may diversify investments in all geographical regions, although being bound by a maximum limit of 50% for emerging markets. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. If the Manager deems it in the interest of Unitholders, the Sub-fund may hold liquidity, including bank deposits, up to 80% of its net assets. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC) • USD 1,500 for Units of class A-AZ FUND USD (ACC)

179

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.006% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other

180

UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

181

182

“QBond” factsheet General Information

Investment policy: with a view to enhancing the value of its assets in the medium term, the Sub-fund shall mainly invest in bonds (fixed-rate, floating-rate, index-linked, subordinated, convertible bonds and bonds cum warrant) and in money market instruments, mainly denominated in Euros and issued by debtors with high credit ratings. The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, currencies, issuers’ rating. The bond/monetary component is not subject to any restrictions in terms of duration. However, up to 40% of the net assets of the Sub-fund may be invested in equity or equity-related securities of companies listed on any world stock exchange, or traded on any world market, regulated, duly operating, recognised and open to the public. The Sub-fund may invest up to 100% of its net assets in OECD currencies other than the Euro (or in derivative financial instruments in such currencies). The Sub-fund may invest a residual portion (up to 10%) in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings, in closed/open-ended funds specialising in investment in commodities, in commodity indexes or in real estate financial instruments. The investment process, which involves a systematic approach, applies quantitative models to regulate exposure to equity and bond markets and, more in general, to any asset class other than liquidity. The management activity is closely connected with a risk-control policy aiming at maximising the risk/return profile of the Sub-fund. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate and interest rate risks, and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 150%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference




183




184

“QInternational” factsheet General Information

Investment policy: the Sub-fund shall invest in equity or equity-related securities (particularly convertible bonds, warrants and investment certificates), in bonds and highly volatile derivative financial instruments. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, currencies, issuer’s rating. The Sub-fund may also hold liquid assets. The investment process, which involves a systematic approach, applies quantitative models to regulate exposure to equity and bond markets and, more in general, to any asset class other than liquidity. The management activity is closely connected with a risk-control policy aiming at maximising the risk/return profile of the Sub-fund. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 300%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference






the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg.

185

For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.006% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

186

"QTrend" Sub-fund factsheet General Information

Investment policy: the Sub-fund shall invest in equity or equity-related securities (particularly convertible bonds, warrants and investment certificates), in bonds and money market instruments, in units of UCITS and/or of other UCIs with a view to enhancing the value of its assets in the medium/long term. There are no restrictions on the duration of the bond/monetary component. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. The Company may, at its own discretion and with a view to pursuing flexible management of the Sub-fund, invest from 0 to 100% of its net assets in equity and may, therefore, sell this component in favour of partial or total investment in bonds and money market instruments. Investments shall be made as follows:

• mainly in the financial instruments of medium/large cap European issuers and – up to a maximum of 10% of net assets – in those of non-European issuers;

• mainly in financial instruments listed on stock exchanges and other regulated European markets and – up to a maximum of 10% of net assets – on all world stock exchanges and regulated markets. The financial instruments shall be denominated in all currencies. The investment process, involving a systematic approach, applies quantitative models to regulate equity market exposure, sector diversification and the stock-picking activity. Management activity is closely associated with a risk-control policy aiming at optimising the risk/return profile of the Sub-fund. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED

Hedging against EUR



(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may

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also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units:



188

"AZ Equity – Egypt" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities listed principally on a stock exchange in Egypt and/or issued by companies that have their head office in Egypt and/or that carry out a predominant part of their economic activities in Egypt. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets in shares and other equity-related securities issued by companies that have their head office in and/or conduct a predominant part of their economic activities in Egypt, and are listed on a stock exchange in Egypt or any other stock exchange in the whole world. The Sub-fund may also invest:

− Up to 20% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies worldwide and/or companies from all over the world, including emerging countries, without rating constraints;

− Up to 10% of its net assets in units of UCITS and/or of other UCIs; − Up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 100 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A - PLATFORM (USD) USD NON HEDGED No Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC) and A - PLATFORM (USD). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. The PLATFORM type Units are mainly intended for third-party distributors (banks, distribution platforms).

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Initial subscription and Minimum initial subscription amount: the Company Board of Directors reserves the right to launch the Sub-fund at a later date. Initial price is:

• EUR 5 for Units of class A-AZ FUND (ACC) and B-AZ FUND (ACC) • USD 5 for Units of class A-AZ FUND USD (ACC) and A - PLATFORM (USD)

The minimum initial subscription amount is: : • EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), • USD 1,500 for Units of class A-AZ FUND USD (ACC) and A - PLATFORM (USD) (except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND USD (ACC) and A - PLATFORM (USD) Units:

- maximum of 3% of the par value of the investment plan for all subscriptions via multi-annual investment plans;

- maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus).

Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. MANAGER: AZIMUT (DIFC) Limited has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZIMUT (DIFC) Limited is incorporated as a limited liability company under the laws of the Dubai International Financial Centre and its registered office is located at Central Parks Towers, Unit 45, Floor 16, Dubai International Financial Centre, PO Box 506944, Dubai, United Arab Emirates. INVESTMENT ADVISOR: AZIMUT (ME) Limited has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. Consulting services will be provided directly to AZIMUT (DIFC) Limited (i.e. the Manager). AZIMUT (ME) Limited was incorporated as a limited liability company under the laws of Abu Dhabi Global Market and its registered office is located at Al Khatem Tower, Unit 2, Floor 7, ADGM Square, Al Maryah Island, PO Box 764630, Abu Dhabi, United Arab Emirates Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units.

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The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“AZ Allocation – Global Income” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide a regular income and capital growth in the medium/long term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of shares and other equity-related securities, generating high cash flows and a high level of dividend yield, as well as debt securities issued worldwide. The Sub-fund actively manages the allocation between equities and debt securities, based on the expected risk and return between these two asset classes. The bottom-up selection procedure for shares and other equity-related securities will mainly focus on companies with an attractive cash flow. The remaining portion of the portfolio will be invested in debt securities with an attractive yield to maturity in order to enhance the profitability of the Sub-fund. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 20% and 70% of its net assets in shares and other equity-related securities issued by companies worldwide. The Sub-fund may also invest:

- up to 80% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries and/or companies headquartered in developed countries;

- up to 50% of its net assets in debt securities with a sub-investment grade rating; - up to 30% of its net assets in debt securities and money market instruments issued by governments,

supranational institutions or governmental authorities of emerging countries and/or companies headquartered in emerging countries;

- up to 30% of its net assets in convertible bonds. The Sub-fund may also invest:

- up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 30% of its net assets in cash when market conditions do not allow sufficient investments with an


- futures, options and financial contracts for differences (CFDs) on shares and equity-related securities, equity indices, including, among others, E-mini S&P500 Future, Eurostoxx 50 Future and Eurostoxx 50 Index Dividend Futures;

- futures, options and CFDs on debt securities and ETFs investing in debt securities, including, among others, Bund Future, BTP Future and US10YR Note Future.

The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type).

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LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


exchange rate risk A-AZ FUND (YEN Hedged - ACC)




A-AZ FUND (YEN Hedged - DIS)


B-AZ FUND (YEN Hedged - DIS)



JPY NON HEDGED No


JPY NON HEDGED No

A-AZ FUND (YEN non Hedged - DIS)

JPY NON HEDGED No

B-AZ FUND (YEN non Hedged - DIS)

JPY NON HEDGED No

A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period21. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets.



193

Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - ACC), B-AZ FUND (YEN non Hedged - ACC), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged - DIS) Units.

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - ACC), B-AZ FUND (YEN non Hedged - ACC), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged - DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) • YEN 200,000 for Units of class A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ

FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - ACC), B-AZ FUND (YEN non Hedged - ACC), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged – DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 or YEN 60,000 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 or YEN 200,000 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN Hedged – DIS), A-AZ FUND (YEN non Hedged - ACC) and A-AZ FUND (YEN non Hedged - DIS):


the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg.

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For class B-AZ FUND (ACC), B-AZ FUND (DIS), B-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN non Hedged - ACC) and B-AZ FUND (YEN non Hedged - DIS) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units, an additional variable management fee is to be charged. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period.

195

“Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. For Units of class A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - ACC), B-AZ FUND (YEN non Hedged - ACC), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged – DIS): no additional variable management fee is provided. Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged - DIS) Units, and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN non Hedged - ACC) and B-AZ FUND (YEN non Hedged - ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

196

"Global Unconstrained Bond Fund" factsheet22 General Information

Investment policy: the Sub-fund aims to generate a combination of current recurring earnings and capital revaluation in the medium-long term. For this purpose, the Sub-fund invests – with no restrictions in terms of geographical area and/or sector – mainly (i.e. at least two thirds of the Sub-fund’s net assets) in bond financial instruments of corporate issuers with credit ratings usually no lower than investment grade. The Sub-fund may also invest in government bonds, money market instruments, units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings oriented towards bond and/or monetary instruments as well as bank deposits. Up to a maximum of 15% of the Sub-fund’s net assets may be invested in equity securities. The aforementioned instruments may be denominated in any currency. The average duration of the financial instruments in the portfolio will normally be between -10 and +10 years. The Sub-fund may hold liquid assets. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit and other risks) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently suspend subscriptions (including conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. Investors are informed of the decision by means of special notice. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:



rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No

22 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Bond – Global Macro Bond.

197

A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period23. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units.

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. (23) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) and B-AZ FUND (DIS) Units: a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount to the Sub-fund is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“Institutional Target” factsheet24 General Information

Investment policy: the Sub-fund aim is a positive absolute return on a calendar year basis (from 1 January to 31 December), linked to interest and inflation trends. For this purpose, investments will mainly be directed towards bond market instruments with ratings at least of investment grade level. The Sub-fund may also hold Exchange – Traded Commodities (ETC) upon the condition that they are classed as transferable securities pursuant to article 2 of the Luxembourg Regulation of 8 February 2008 concerning some provisions included in the law dated 20 December 2002 and subsequent amendments. The Company may also, at its own discretion, invest up to 30% of the net assets in equity market instruments. Investments shall be made in all geographical areas with no restrictions in terms of sectors and/or currency denomination. The Sub-fund may also hold liquid assets and money market instruments. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Company usually hedges exchange rate risks. As the Sub-fund is managed to generate a positive return on a calendar year basis, the management style is dynamic and flexible, with risk control partly based on the performance achieved over the period of time considered. The investment policy is based on asset allocation, on individual stock-picking and on a strategy aimed at identifying the best moment to buy/sell specific portfolio securities. This management policy may also be characterised by frequent changes in the portfolio. Accordingly, the Company may reduce the equity exposure of the portfolio to -10% of net assets, by using derivative financial instruments. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND CORPORATE (ACC)

EUR NON HEDGED No

A-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND CORPORATE EUR NON HEDGED No

24 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Allocation – Global Conservative..

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(DIS) A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD CORPORATE (ACC)


A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR A-AZ FUND USD CORPORATE (DIS)


Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND CORPORATE (ACC), A-AZ FUND CORPORATE (DIS), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND CORPORATE USD (ACC) and A-AZ FUND CORPORATE USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,000,000 for Units of class A-AZ FUND (ACC) and A-AZ FUND (DIS) • EUR 250,000 for Units of class A-AZ FUND CORPORATE (ACC) and A-AZ FUND CORPORATE (DIS)

• USD 1,000,000 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) • USD 250,000 for Units of class A-AZ FUND CORPORATE USD (ACC) and A-AZ FUND CORPORATE USD

(DIS) including all subscription fees and costs (please see Appendix II of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available to investors. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: no subscription or redemption fees payable. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount to the Sub-fund is EUR 10,000 (or USD 10,000 depending on type of Units subscribed) regardless of the initial minimum subscription amount. Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), A-AZ FUND CORPORATE (DIS), A-AZ FUND USD (DIS), A-AZ FUND CORPORATE USD (DIS) Units and shall reinvest revenue of holders of class A-AZ FUND (ACC), A-AZ FUND CORPORATE (ACC), A-AZ FUND USD (ACC),

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A-AZ FUND CORPORATE USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.


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“European Dynamic” factsheet General Information

Investment policy: the Sub-fund is Feeder of the "AZ Multi Asset – Institutional Europe D" Sub-fund (the Master). The Feeder shall permanently invest at least 85% of its assets in said Master. The aim, investment policy and risk profile of the Feeder and Master Sub-funds are similar. The investment performance of the Feeder and Master is similar except for the Feeder's assets which are not invested in the Master. The Feeder may invest up to 15% of its assets in one or more of the following items:


of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law "AZ Multi Asset- Institutional Europe D" is a Sub-fund, registered in Luxembourg, of AZ Multi Asset, an undertaking for collective investment in transferable securities governed by Part I of 2010 Law. The investment policy of the Sub-fund aims at increasing capital value. With a view to enhancing the value of its assets in the medium/long term, the Master shall pursue a policy of balanced portfolio with shares and bonds/money market instruments, all mainly denominated in Euros. The share part of the portfolio shall not exceed 70% of the Master's net assets. 40% of the Master’s net assets may be invested in financial instruments denominated in currencies other than the Euro. In respect of such securities, the Company usually hedges exchange rate risks. The Sub-fund shall mainly invest (i.e. at least two thirds of Master's assets) in financial instruments of issuers whose main office is located in a European country or mainly operating in one of these countries. The Master is not subject to any restrictions in terms of issuer’s rating. For the purposes of effective portfolio management, the Master may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Master may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Master Sub-fund usually may invest no more than 10% of its net assets in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings. The Feeder as well as the Master will aim at maintaining a leverage lower than 200%, calculated on the total of all derivatives' notional amounts. The gross exposure of the Master to the total return swap contracts will not exceed 20% of the net asset value of the Master and it is envisaged that this exposure will remain in the range between 0% and 15% of the net asset value of the Master. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on Merger Arbitrage financial indices. Investors may obtain free copies of the Prospectus of the Master in French at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Further information on the Master and on the contracts regulating the Master-Feeder relationship are available in French, at the registered office of the Company as well as at the dealers in the countries where this Sub-fund is traded. The Feeder shall not bear any direct cost for investing in the Master. The Master Sub-fund in which the Feeder invests shall not bear any cost excluding the service fees or those provided in the Prospectus of the Master.

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Investment information: the Feeder and the Master are managed by the same Company. As such, and in accordance with the provisions of the 2010 Law, the Company also established specific internal policies relating to the Master and Feeder. These policies describe in particular (i) the basis for redemption, subscription, reimbursement of units as well as their suspension and (ii) how to coordinate the calendar for the calculation and publication of the net asset value. The policies regulating the relationship between the Feeder and the Master are freely available to investors, in French, at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period25. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each (25) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.006% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an

205

annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

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“AZ Allocation – Balanced FoF” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium/long-term capital growth primarily through exposure to a wide range of debt securities, shares and other equity-related securities. INVESTMENT STRATEGY: The Sub-fund is a fund of funds and seeks to achieve its investment objective by investing primarily in units of UCITS and/or other UCIs. The Sub-fund actively manages the allocation between asset types using a top-down approach. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 50% and 100% of its net assets in units of UCITS and/or other UCIs. The Sub-fund invests between 30% and 60% of its net assets, directly or indirectly, by investing in Units of UCITS and/or other UCIs, in shares and other equity-related securities issued by companies throughout the world. Direct investments in shares and other equity-related securities will not exceed 10% of the Sub-fund’s net assets. For the portion of fixed income portfolio that is invested in debt securities, the Sub-fund may invest:

- up to 70% of its net assets, directly or indirectly, by investing in units of UCITS and/or other UCIs, in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries (including debt securities rated sub-investment grade). Direct investments in these securities will not exceed 50% of the Sub-fund’s net assets;

- up to 70% of its net assets in Units of UCITS and/or other UCIs investing in debt securities issued by companies that have their head office in developed countries;

- up to 70% of its net assets in Units of UCITS and/or other UCIs investing in debt securities rated sub-investment grade;


- up to 50% of its net assets in Units of UCITS and/or other UCIs investing in convertible bonds (including up to 15% of its net assets in Units of UCITS and/or other UCIs investing in contingent convertible bonds (CoCo bonds));

- up to 10% of its net assets in Units of UCITS, and/or other UCIs that invest in asset-backed securities (ABS) and mortgage-backed securities (MBS);

- up to 10% of its net assets in Units of UCITS and/or of other UCIs managed by the Company; The Sub-fund may also invest:

- up to 30% of its net assets in Units of UCITS and/or other UCIs that actively manage the allocation of their assets; for example, but not exclusively, "mixed assets", "allocation", "balanced" or "flexible" funds;

- up to 10% of its net assets in Units of UCITS and/or other UCIs with an investment strategy known as "alternative" and/or "uncorrelated" to the main asset classes; for example, but not exclusively, "Long/Short" (on shares and debt securities), "Arbitrage", "Event Driven", "Global Tactical Asset Allocation" (GTAA) or "Global Macro" strategies;

- up to 10% of its net assets in Units of UCITS and/or other UCIs (without embedded derivatives and which comply with the 2010 Law) giving exposure to commodities;

- up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an attractive return potential and risk profile to be identified.

The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or for risk hedging purposes:

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The Sub-fund shall not invest directly in corporate debt securities, ABS/MBS, CoCo bonds or securities that are in default or in difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 400 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference







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Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch.

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“Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

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“AZ Allocation – Global Conservative” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities and shares and other equity-related securities. The Sub-fund actively manages the allocation between equities and debt securities, based on the expected risk and return between these two asset classes. The fixed and/or variable income debt securities, mainly of investment grade rating, are the main items in the Sub-fund's portfolio. The remaining part of the portfolio will be invested in shares and other equity-related securities throughout the world. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 60% and 100% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies from developed countries and/or companies with their head offices in developed countries. The Sub-fund invests up to 25% of its net assets in debt securities rated sub-investment grade at the time of purchase. A debt security rated investment grade at the time of acquisition which subsequently becomes sub-investment grade, or rated sub-investment grade at the time of acquisition which subsequently becomes distressed or in default, will not be sold unless, in the opinion of the Manager, it is in the interest of the Unitholders to do so. The Sub-fund invests up to 40% of its net assets in shares and other equity-related securities issued by companies worldwide, including up to 10% of its net assets in emerging countries. The Sub-fund may also invest:

- Up to 15% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies headquartered in an emerging country;

- up to 15% of its net assets in CoCo bonds; - up to 15% of its net assets in convertible bonds (other than CoCo bonds); - up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an


- futures, options and financial contracts for differences (CFDs) on shares and equity-related securities, and on equity indices, including, among others, E-mini S&P500 Future and Eurostoxx 50 Future;

- futures, options and CFDs on debt securities and ETFs investing in debt securities, including, among others, Bund Future and BTP Future and US10YR Note Future.

The Sub-fund may also invest in total return swap contracts. The gross notional exposure to the total return swap contracts shall not exceed 10% of the net assets of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 10% of the net assets of the Sub-fund. The strategies underlying total return swap contracts are indices on the main economic sectors including, among others, MSCI World Bank Index, MSCI World Insurance Index and MSCI World Auto & Components Index. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty at the time of purchase.

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CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:


currency Type of hedging Hedging against exchange rate

risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period26. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or (26) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Until 31 March 2020: Any additional variable management fee amounts to 0.006% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return

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generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per Unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per Unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. From 1 April 2020: An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



Distribution Policy: the Sub-fund shall distribute revenue to Holders of class A-AZ FUND (DIS), B-AZ FUND

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(DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed yearly, according to the following period: 1 January - 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.


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“Conservative” factsheet27 General Information

Investment policy: with a view to enhancing the value of its assets in the medium-long term, the Sub-fund shall mainly invest in bonds (fixed-rate, floating-rate, index-linked, subordinated, convertible bonds and bonds cum warrant) and in money market instruments, denominated in any currency and issued by debtors with high credit ratings. However, up to 35% of the net assets of the Sub-fund may be invested in the securities or equivalents of listed companies, mainly in European or American markets, or traded on another world market, regulated, duly operating, recognised and open to the public. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. 27 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Allocation – Global Conservative.

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Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“AZ Bond – Euro Aggregate Short Term” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide a regular income and capital growth in the short/medium term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of fixed and/or variable rate debt securities issued by European governments, supranational institutions or governmental bodies and/or companies that have their head office and/or conduct a significant proportion of their economic activities in European countries. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 60% and 100% of its net assets in debt securities rated investment grade at the time of acquisition issued by governments, supranational institutions or governmental authorities of European developed countries and/or companies that have their registered office and/or conduct a significant proportion of their economic activities in European developed countries. The Sub-fund invests at least 60% of its net assets in debt securities denominated in Euro. The Sub-fund invests up to 10% of its net assets in debt securities rated sub-investment grade at the time of purchase. If the debt securities issued by the Italian government are rated sub-investment grade, the investment limit in debt securities and other similar securities rated sub-investment grade will be increased to 30% of the Sub-fund’s net assets. Debt securities rated investment grade at the time of acquisition that become sub-investment grade thereafter will not be sold unless, in the opinion of the Manager, it is in the best interests of Unitholders to do so. The Sub-fund invests in debt securities with a remaining term to maturity (or at the first call date) of up to 5 years, and the total effective duration of the Sub-fund will not exceed 3 years. Investments in emerging markets will not exceed 10% of the Sub-fund’s net assets. The Sub-fund may also invest:

− Up to 40% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of non-European developed countries and/or companies that have their registered office in a country other than a European developed country;


− Up to 10% of its net assets in CoCo bonds; − Up to 10% of its net assets in asset-backed securities (ABS) and mortgage-backed securities (MBS); − Up to 10% of its net assets in units of UCITS and/or of other UCIs; − Up to 20% of its net assets in money market instruments and cash when market conditions do not

allow sufficient investments with an attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, BTP Future, Short term Euro-BTP futures, Bund Future, Euro Schatz Future and 10-Years US Treasury Note Future. The Sub-fund may also invest in credit default swaps (CDS) up to 20% of its net assets for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund does not invest in securities that are defaulting or in difficulty at the time of purchase.

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CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts, currency futures and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. The net exposure to currencies other than the Sub-fund’s reference currency is limited to 20%. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 150 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 9) and 12) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:



risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period28. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company.



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In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. MANAGER: AZ SWISS & PARTNERS SA has been appointed as Manager for the Sub-fund, based on an agreement for an indefinite period but subject to termination by either party with six months’ prior notice. AZ SWISS & PARTNERS SA is a Joint Stock Company (Société Anonyme) established under Swiss law with registered office at Via Carlo Frasca, 5 – 6900 Lugano, Switzerland. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus.

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“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.

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“AZ Bond – Target 2024” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve capital growth until the target maturity date of 30 June 2024. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities issued by governments, supranational institutions or governmental bodies around the world and/or companies around the world. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund will be managed with a target maturity date of 30 June 2024. The portfolio is composed of fixed and/or floating rate debt securities, and has an effective duration that is close to the target maturity date. In order to actively manage the Sub-fund in the interest of investors, the effective duration of the portfolio may deviate by 6 months from the target maturity without substantially changing the risk profile of the Sub-fund. The Sub-fund invests between 70% and 100% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies from developed countries and/or companies with their head office in developed countries. The Sub-fund invests up to 30% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies headquartered in emerging countries. The Sub-fund invests up to 70% of its net assets in debt securities rated sub-investment grade. The Sub-fund may also invest:

- up to 50% of its net assets in hybrid, subordinated (other than contingent convertible bonds (CoCo bonds)) and/or perpetual bonds issued by financial and non-financial institutions;

- up to 20% of its net assets in CoCo bonds including, among others, "additional tier 1", "restricted Tier 1" and "Tier 2" type CoCo bonds;

- up to 20% of its net assets in convertible bonds (other than CoCo bonds); - up to 10% of its net assets in distressed securities (including up to 5% of its net assets in defaulted

securities); - up to 10% of its net assets in Units of UCITS and/or other UCIs.

The Sub-fund does not invest in shares and equity-related securities other than those resulting from the conversion of debt securities and up to a maximum of 5% of its net assets. The Sub-fund may invest up to 20% of its net assets in cash and money market instruments up to 3 months before the target maturity date. Cash and money market instruments may represent up to 100% of the Sub-fund’s net assets during the period from 3 months before and up to 3 months after the target maturity date (30 June 2024). The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, Bund Future, Euro BOBL Future, BTP Future, Short term Euro-BTP futures and US10YR Note Future. The Sub-fund may also use credit default swaps (CDS) to manage the overall credit risk of the portfolio, and may invest up to 30% of its net assets in CDS for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund shall not invest in asset-backed securities (ABSs) and/or mortgage-backed securities (MBSs).

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After the target maturity date of 30 June 2024, the Sub-fund may either be liquidated, if the Company considers that this option is in the best interests of investors, or continue to be managed within the investment limits set out above without reference to a future target date or any life cycle constraints. The Unitholders of the Sub-fund will receive a notice informing them of the decision either to continue the management or to liquidate the Sub-fund. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro. The sub-fund may use currency futures contracts, currency futures and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. The net exposure to currencies other than the Sub-fund’s base currency is limited to 20%.

In addition, the Sub-fund will use currency futures, currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 11), and 12) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference

currency Type of hedging Hedging against exchange rate risk

A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC)


A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period29. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. (29) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL

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MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units.

The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period.

During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration.

The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period.

If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed.

“Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period.

“Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period.

“Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period.

“Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch.

“Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate.

The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the

226

following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

227

“US Income” Sub-fund factsheet General Information

Investment policy: the Sub-fund shall preferably invest in bonds denominated in US dollars with no restrictions on the nationality of the issuers. Up to a maximum of 30% of net assets may also be invested in bonds denominated in other currencies. The Sub-fund’s investment policy also allows for investment in fixed and floating rate, index-linked, subordinated and cum-warrant bonds and money market instruments. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. No investment in convertible bonds or commercial paper is provided for. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg.

228

For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

229

“Patriot” Sub-fund factsheet General Information

Investment policy: with a view to enhancing the value of its assets in the medium term, the Sub-fund shall normally invest mainly in bonds issued by governments, mostly denominated in Euros and mainly issued by the Italian government. The Sub-fund may also hold in its portfolio – in a limited way – corporate bonds with a high credit rating (investment grade) and below the investment grade, mainly issued by Italian issuers. The Sub-fund may also hold liquid assets and money market instruments. The average financial duration of the bond portfolio shall not be less than 7 years. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:



risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s

230

discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period30. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. (30) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


231

Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

232

“Aggregate Bond Euro Plus” factsheet General Information

Investment policy: in view of generating a result in terms of capital and income growth mainly by investing in a bond portfolio and other fixed and variable income securities denominated in Euros and issued by governments, government agencies, supranational and corporate issuers at global level. The Sub-fund shall also invest in financial instruments denominated in currencies other than the Euro. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. The aforementioned instruments also include Over The Counter (OTC) Bonds traded or listed on a regulated market. The Sub-fund may use derivative instruments for hedging and investment purposes in accordance with its risk profile. Derivative instruments may, for example, be used to generate extra income from credit risk exposure by buying or selling protection via credit default swaps, rebalancing the duration of the Sub-fund via the tactical use of interest rate linked derivatives, generating extra income by means of derivative instruments linked to inflation or volatility, or by increasing exchange rate exposure via the use of currency linked derivative instruments. Derivatives may also be used to create synthetic instruments. These derivatives include over-the-counter and/or exchange traded options, futures, warrants, swaps, forward contracts and/or a combination of these instruments. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. The gross exposure to total return swap contracts will not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 10% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on Fixed Income financial indices. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND TW (ACC) EUR NON HEDGED No B-AZ FUND TW (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND TW USD (ACC)

USD NON HEDGED No

B-AZ FUND TW USD (ACC)

USD NON HEDGED No

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi.

233

This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period31. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and A-AZ FUND TW USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) (except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units:

- maximum of 3% of the par value of the plan for all subscriptions via multi-annual investment plans; (31) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


234

- maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. A subscription fee is payable for class A-AZ FUND TW (ACC) and A-AZ FUND TW USD (ACC) Units, of maximum 5% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). For B-AZ FUND (ACC), B-AZ FUND TW (ACC) and B-AZ FUND TW USD (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix II of the Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: SCHRODER Investment Management has been appointed as Manager for this Sub-fund, based on an agreement dated 10 February 2011. SCHRODER Investment Management is a Limited Company established under UK law with registered office at 31 Gresham Street, London EC2V 7QA. SCHRODER Investment Management Ltd may delegate some of its functions to SCHRODER group entities. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of the Prospectus. For A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) unit classes: it is also foreseen to pay an additional variable management fee amounting to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis.

For AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) Units, an additional variable management fee is payable in the following instances:

• in case of over-performance, i.e., if the change in Unit value within the reference timeframe (calendar year) exceeds the change in the reference index below, within the same timeframe (calendar year). It is calculated on the last business day of the calendar year before the reference timeframe (calendar year); and

• if Unit value calculated at the last business day of the current calendar year is higher than the Unit value calculated at the last business day of the previous calendar year. When both the above conditions are met, the additional fee will be 10% of said over-performance, multiplied by the number of existing Units at the Valuation Date to which the calculation of the fee refers. This additional fee is withdrawn every year from the Sub-fund assets, on the first business day of the calendar year following the reference period. The additional variable management fee is applied daily with the provision of the day to which the calculation refers being accrued as above indicated. Every day, the provision of the previous day will be credited and, where appropriate, the provision of the day to which the calculation refers will be debited so as to calculate the total value of the Sub-fund. Reference index: 100% Bloomberg Barclays Aggregate Bond Index.

235

The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

236

"Short Term Global High Yield" Sub-fund factsheet General Information

Investment policy: the Sub-fund shall focus investments in units of UCITS and/or of other UCIs of the bond type. The Sub-fund shall mainly invest – normally up to 100% of its assets - in units of UCITS and/or of other UCIs oriented towards investment in corporate bonds having a rating below investment grade: high yield bonds and/or distressed securities. Normally, the Sub-fund will invest primarily in UCITS and/or other UCIs with a duration of less than three years. The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, currencies, issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund may also use derivative financial instruments on the above-mentioned investments – not only for direct investment purposes, but also for hedging purposes (against market, interest rate, exchange rate, credit and other risks). For the purposes of effective portfolio management, derivative financial instruments can be used to an accessory extent. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Specific risks: investment in this Sub-fund features high specific risks as explained in detail under paragraphs 9) and 10) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR


currency Type of hedging Hedging

against exchange rate risk

A-AZ FUND (Euro Hedged - ACC) EUR CROSS HEDGED

Hedging against USD

B-AZ FUND (Euro Hedged - ACC) EUR CROSS HEDGED

Hedging against USD

A-AZ FUND (Euro Hedged - DIS) EUR CROSS HEDGED

Hedging against USD

B-AZ FUND (Euro Hedged - DIS) EUR CROSS HEDGED

Hedging against USD


EUR NON HEDGED No


EUR NON HEDGED No


EUR NON HEDGED No


EUR NON HEDGED No

A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No Unit class: the Sub-fund will issue Units of class A-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - ACC), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - ACC), B-AZ FUND

237

(Euro non Hedged - DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS)



subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 04 May 2009 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per Unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset

238

value (as defined in chapter 12 above of this Prospectus) per Unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to Holders of class A-AZ FUND (Euro Hedged - DIS), B-AZ FUND (Euro Hedged - DIS), A-AZ FUND (Euro non Hedged - DIS), B-AZ FUND (Euro non Hedged - DIS), A-AZ FUND USD (DIS) Units, and shall reinvest revenue of Holders of class A-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

239

“Hybrid Bonds” factsheet General Information

Investment policy: with a view to enhancing the value of its assets in the medium/long term, the Sub-fund shall invest in debt instruments (fixed and floating rate, index-linked, subordinated, convertible and cum-warrant). For this reason, the Sub-fund shall normally invest mainly in corporate bonds denominated in any currency of the G7 countries. In particular, the Sub-fund shall invest in hybrid and/or perpetual financial instruments. Exposure to exchange rate risk shall be managed in a dynamic and flexible manner. Bonds held by each Sub-fund shall normally have a high credit rating (investment grade). The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors or duration. The Sub-fund may also hold liquid assets and money market instruments. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


risk A-AZ FUND (YEN Hedged - ACC)




A-AZ FUND (YEN Hedged - DIS)


B-AZ FUND (YEN Hedged - DIS)



JPY NON HEDGED No


JPY NON HEDGED No

A-AZ FUND (YEN non Hedged - DIS)

JPY NON HEDGED No

B-AZ FUND (YEN non Hedged - DIS)

JPY NON HEDGED No

A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No

240

B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period32. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - ACC), B-AZ FUND (YEN non Hedged - ACC), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged - DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - ACC), B-AZ FUND (YEN non Hedged - ACC), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged - DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:



241


• USD 25,000 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) • YEN 3.000.000 for Units of class A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ

FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - ACC), B-AZ FUND (YEN non Hedged - ACC), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged – DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN Hedged – DIS), A-AZ FUND (YEN non Hedged - ACC) and A-AZ FUND (YEN non Hedged - DIS):


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC), B-AZ FUND (DIS), B-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN non Hedged - ACC) and B-AZ FUND (YEN non Hedged - DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 or YEN 60,000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. For A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) unit classes it is also foreseen to pay an additional variable management fee amounting to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per Unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per Unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. For Units of class A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - ACC), B-AZ FUND (YEN

242

non Hedged - ACC), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged – DIS): no additional variable management fee is provided. Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND (YEN Hedged - DIS), B-AZ FUND (YEN Hedged - DIS), A-AZ FUND (YEN non Hedged - DIS) and B-AZ FUND (YEN non Hedged - DIS) Units, and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND (YEN Hedged - ACC), B-AZ FUND (YEN Hedged - ACC), A-AZ FUND (YEN non Hedged - ACC) and B-AZ FUND (YEN non Hedged - ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

243

"Global Equity" factsheet General Information

Investment policy: the Sub-fund shall invest in units of UCITS and/or of other UCIs. In particular, the Sub-fund shall mainly invest in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings oriented towards equity investment and/or highly volatile financial instruments. The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, currencies, issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.







the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

244



Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.


Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

245

“Credit” factsheet General Information

Investment policy: the Sub-fund shall invest in units of UCITS and/or of other UCIs. In particular, the Sub-fund shall mainly invest in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings oriented towards government and/or supranational securities, emerging credit instruments, corporate bonds and/or convertible bonds. The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, currencies, or issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:





246

Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

247

“International Bond” Sub-fund factsheet General Information

Investment policy: the Sub-fund shall invest in units of UCITS and/or of other UCIs which generate the best results in terms of inflows, assets under management and/or performance in every quarter. The Company shall select its investments based on results provided by databanks specialised in the asset management sector. In order to meet the above criteria, the Sub-fund shall mainly invest – normally up to 100% - in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings oriented towards government and/or supranational securities, emerging country government debt securities, corporate bonds and/or convertible bonds. The Sub-fund may also invest in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings which employ “alternative” investments strategies that are unrelated to financial market trends. The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, currencies, issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund will manage exchange rates in an active manner. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg.

248

For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

249

“AZ Allocation – Conservative FoF” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve moderate medium/long-term capital growth primarily through exposure to a wide range of debt securities, shares and other equity-related securities. INVESTMENT STRATEGY: The Sub-fund is a fund of funds and seeks to achieve its investment objective by investing primarily in units of UCITS and/or other UCIs. The Sub-fund actively manages the allocation between asset types using a top-down approach. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 50% and 100% of its net assets in units of UCITS and/or other UCIs. The Sub-fund invests up to 30% of its net assets, directly or indirectly, by investing in Units of UCITS and/or other UCIs, in shares and other equity-related securities issued by companies throughout the world. Direct investments in shares and other equity-related securities will not exceed 5% of the Sub-fund’s net assets. For the portion of fixed income portfolio that is invested in debt securities, the Sub-fund may invest:

- up to 100% of its net assets, directly or indirectly, by investing in units of UCITS and/or other UCIs, in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries (including debt securities rated sub-investment grade). Direct investments in these securities will not exceed 50% of the Sub-fund’s net assets;

- up to 100% of its net assets in Units of UCITS and/or other UCIs investing in debt securities issued by companies that have their head office in developed countries;

- up to 70% of its net assets in Units of UCITS and/or other UCIs investing in debt securities rated sub-investment grade;


- up to 35% of its net assets in Units of UCITS and/or other UCIs investing in convertible bonds (including up to 10% of its net assets in Units of UCITS and/or other UCIs investing in contingent convertible bonds (CoCo bonds));

- up to 10% of its net assets in Units of UCITS, and/or other UCIs that invest in asset-backed securities (ABS) and mortgage-backed securities (MBS);

- up to 10% of its net assets in Units of UCITS and/or of other UCIs managed by the Company. The Sub-fund may also invest:

- up to 20% of its net assets in units of UCITS and/or other UCIs that actively manage the allocation of their assets; for example, but not exclusively, "mixed assets", "allocation", "balanced" or "flexible" funds;

- up to 10% of its net assets in Units of UCITS and/or other UCIs with an investment strategy known as "alternative" and/or "uncorrelated" to the main asset classes; for example, but not exclusively, "Long/Short" (on shares and debt securities), "Arbitrage", "Event Driven", "Global Tactical Asset Allocation" (GTAA) or "Global Macro" strategies;

- up to 10% of its net assets in units of UCITS and/or other UCIs (without embedded derivatives and which comply with the 2010 Law) giving exposure to commodities;



250



The Sub-fund shall not invest directly in corporate debt securities, ABS/MBS, CoCo bonds or securities that are in default or in difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 350 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk

A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:





251

Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



252

“Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

253

“Carry Strategies” factsheet33 General Information

Investment policy: the Sub-fund has the objective to offer an investment with positive annual return compared to a very low volatility. For this purpose, the Sub-fund shall invest in shares, bonds and money market instruments as well as in Undertakings for Collective Investments in Transferable Securities and/or other UCIs. Each of the Undertakings for collective investments in transferable securities and/or of other Undertakings for collective investment may invest in a wide range of products, including shares, bonds, money market instruments and securities having equity securities and commodities as underlying assets. The Sub-fund may also invest, even as main investment, in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings belonging to the Azimut Group, characterised by investment strategies that are unrelated to financial market trends. The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, currencies, issuers’ rating. Furthermore, the Sub-fund may hold liquid assets. Exchange rate risk shall normally be hedged for at least 60% of the Sub-fund net assets. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, but also (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes and also for any investment purpose. Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently suspend subscriptions (including conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. Investors are informed of the decision by means of special notice. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. The gross exposure to total return swap contracts will not exceed 25% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long/short" strategies of financial indices and funds. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD USD HEDGED Hedging against EUR

33 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Alternative – Multistrategy FoF..

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(ACC) A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period34. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. (34) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


255



subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. This management fee will apply to the part of assets not represented by Undertakings for Collective Investments in Transferable Securities and/or UCIs belonging to the Azimut Group. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. This additional variable management fees will apply to the part of assets not represented by Undertakings for Collective Investments in Transferable Securities and/or UCIs belonging to the Azimut Group. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

256

"AZ Bond – Income Dynamic" Sub-fund factsheet General Information

Investment policy: The investment objective of the Sub-fund is to achieve a positive rate of return that is higher than the money markets, taking advantage of the opportunities for yield improvement resulting from movements in the short and medium term yield curves. The Sub-fund invests in debt securities and credit linked notes issued by governments or governmental authorities and/or companies worldwide (including emerging markets). The Sub-fund may specially focus on debt securities issued by the Italian government as well as debt securities and credit linked notes denominated in euros and issued by other European governments or European government authorities. The average duration of the Sub-fund's portfolio will not exceed 3 years. The maximum residual maturity of the Sub-fund's investments is up to 5 years. The Sub-fund invests: - at least 30% of its net assets in Italian government debt securities; - up to 20% of its net assets in debt securities and credit linked notes rated sub-investment grade at the

time of investment. If the Italian government's debt securities are rated sub-investment grade, the investment limit for debt securities and credit linked notes rated sub-investment grade will be increased to 50% of the Sub-fund's net assets at the time of investment;

- at least 10% of its net assets in debt securities and credit linked notes with a residual maturity of more than 24 months;

- up to 30% of its net assets in debt securities and credit linked notes denominated in currencies other than the Euro;

- up to 10% of its net assets in debt securities and credit linked notes issued by governments or companies in emerging countries;

- up to 10% of its net assets in Cash; - up to 10% of its net assets in units of UCITS and/or other UCIs and/or ETFs generally investing in

investment grade corporate bonds and government bonds denominated in euro, including inflation-linked bonds.

The Sub-fund does not invest in equities and other equity-related securities. The Sub-fund shall not invest in debt securities classified as asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds, or defaulted securities, or those experiencing any difficulty at the time of purchase. If a debt security rated investment grade at the time of investment receives a sub-investment grade rating, it will not be sold unless the Company considers that it is in the interest of the Unitholders to do so. The base currency of the Sub-fund is the Euro (EUR) and the Sub-fund does not intend to hedge the currency risk against other currencies of the investments in its portfolio. The Sub-fund may use currency futures, currency swaps and currency options for investment purposes in order to dynamically adjust the overall currency exposure of the portfolio according to market opportunities. In addition, the Sub-fund will use currency futures, currency swaps and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED class). The Sub-fund will also use bond futures contracts and may have long or short exposures to change the overall sensitivity of the portfolio to interest rates. The Sub-fund tends to maintain a leverage lower than 50 %, calculated on the total of all derivative financial instruments' notional amounts.

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Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 2) 3) 4) 6) and 10) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference




(except as required in chapter 9 of this Prospectus for multi-annual investment plans). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: For class A-AZ FUND (ACC), A-AZ FUND USD (ACC) and B-AZ FUND (ACC) Units there is no subscription or redemption fee, unless indicated in Appendix II of this Prospectus. Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.004% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

258

Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter

259

“CGM Opportunistic European” factsheet General Information

Investment policy: the Sub-fund shall invest in equity or equity-related securities (particularly convertible bonds, warrants and investment certificates), in bonds and money market instruments, in units of UCITS and/or of other UCIs with a view to enhancing the value of its assets in the medium/long term. The Sub-fund may invest up to 15% in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings, in closed/open-ended funds specialising in investment in commodities, in commodity indexes or in real estate financial instruments. The Company may, at its own discretion and with a view to pursuing flexible management of the Sub-fund, invest from 0 to 100% of its net assets in equity and in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings and may, therefore, sell this component in favour of partial or total investment in bonds and money market instruments. Investments shall be made as follows:

• mainly in the financial instruments of European issuers and – up to a maximum of 30% of net assets – in those of non-European issuers;

• mainly in financial instruments listed on European stock exchanges and other regulated markets and – up to a maximum of 30% of net assets – on all world stock exchanges and regulated markets.

• No more than 30% of the Sub-fund’s net assets may be invested in financial instruments denominated in non-European currencies. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference currency Type of hedging Hedging against exchange


• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC)

260

• USD 1,500 for Units of class A-AZ FUND USD (ACC) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units:


the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: CGM-Compagnie de Gestion Privée Monégasque has been appointed as Manager of the Sub-fund, based on an agreement dated 26 August 2011. CGM-Compagnie de Gestion Privée Monégasque is a corporation (Société Anonyme) established under the laws of the Principality of Monaco, with registered office at 8, Boulevard des Moulins-Escalier des Fleurs 98000-Monaco. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.

261


262

“CGM Opportunistic Global” factsheet General Information

Investment policy: the Sub-fund shall invest in shares and equity-related securities (particularly convertible bonds, warrants and investment certificates), officially listed on the stock exchange or on any other world market, regulated, duly operating, recognised and open to the public, in units of UCITS and/or of other UCIs, in bonds and money market instruments with a view to enhancing the value of its assets in the long term. The Sub-fund may invest up to 25% in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings, in closed/open-ended funds specialising in investment in commodities, in commodity indexes or in real estate financial instruments. The Company may, at its own discretion and with a view to pursuing flexible management of the Sub-fund, invest from 0 to 100% of its net assets in equity and in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings. The remaining portion of the Sub-fund’s net assets shall be invested in bonds and in money market instruments. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. Exchange rate exposure shall normally be hedged. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference




(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily.

263



the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For class B-AZ FUND (ACC) Units a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: CGM-Compagnie de Gestion Privée Monégasque has been appointed as Manager of the Sub-fund, based on an agreement dated 26 August 2011. CGM-Compagnie de Gestion Privée Monégasque is a corporation (Société Anonyme) established under the laws of the Principality of Monaco, with registered office at 8, Boulevard des Moulins-Escalier des Fleurs 98000-Monaco. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

264

“CGM Opportunistic Government Bond” factsheet General Information

Investment policy: with a view to enhancing the value of its assets in the medium/long term, the Sub-fund shall normally invest mainly in bonds issued by governments, bonds and money market instruments, denominated in any currency and mostly issued by first-rate debtors. The Company may, at its discretion, invest up to 15% of the net assets of the Sub-fund in shares (or equity-related securities) listed on regulated markets, duly operating, recognised and open to the public, mainly European and American. As for the performance of the economic and financial markets, the Sub-fund may concentrate its investments in securities of issuers with Standard & Poor’s rating lower than “BBB-” up to a maximum of 20% of Sub-fund net assets. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 50% of its net assets in units of UCITS and/or of other UCIs. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund will aim at maintaining a leverage lower than 50%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference




(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily.

265



subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: CGM-Compagnie de Gestion Privée Monégasque has been appointed as Manager of the Sub-fund, based on an agreement dated 26 August 2011. CGM-Compagnie de Gestion Privée Monégasque is a corporation (Société Anonyme) established under the laws of the Principality of Monaco, with registered office at 8, Boulevard des Moulins-Escalier des Fleurs 98000-Monaco. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

266

“AZ Bond – Euro Corporate” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide a regular income and capital growth in the medium term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of fixed and/or variable income debt securities denominated in Euro and issued by companies which have their head office and/or which carry out a predominant part of their economic activities in Europe. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 70% and 100% of its net assets in debt securities issued by companies rated investment grade at the time of purchase. The Sub-fund invests at least 60% of its net assets in debt securities issued by companies that have their head office and/or conduct a predominant part of their economic activities in a European developed country. The Sub-fund invests up to 40% of its net assets in debt securities issued by companies that have their head office outside Europe, including emerging countries. Investments in companies with their head office in an emerging country will not exceed 10% of the Sub-fund’s net assets. The Sub-fund invests at least 60% of its net assets in debt securities denominated in Euro. The Sub-fund invests up to 30% of its net assets in debt securities rated sub-investment grade. A debt security rated investment grade at the time of acquisition that subsequently becomes sub-investment grade will not be sold unless, in the opinion of the Manager, it is in the best interests of Unitholders to do so. The Sub-fund may also invest:


− Up to 10% of its net assets in CoCo bonds; − Up to 10% of its net assets in units of UCITS and/or of other UCIs; − Up to 20% of its net assets in money market instruments and/or cash when market conditions do not

allow sufficient investments with an attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, BTP Futures, Short term Euro-BTP futures, Bund Futures, Euro Schatz Futures and 10-Years US Treasury Note Futures. The Sub-fund may also invest in credit default swaps (CDS) up to 20% of its net assets for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities.

267

The net exposure to currencies other than the Sub-fund’s reference currency is limited to 20%. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


exchange rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: CGM-Compagnie de Gestion Privée Monégasque has been appointed as Manager of the Sub-fund, based on an agreement dated 26 August 2011. CGM-Compagnie de Gestion Privée Monégasque is a corporation (Société Anonyme) established under the laws of the Principality of Monaco, with registered office at 8, Boulevard des Moulins-Escalier des Fleurs 98000-Monaco.

268

Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.

269


270

“AZ Bond – USD Corporate” Sub-fund factsheet

General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide an income and capital growth in the medium term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of fixed and/or variable rate debt securities denominated in US dollars and issued by companies that have their head office and/or conduct a predominant part of their economic activities in the United States. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 70% and 100% of its net assets in debt securities rated investment grade at the time of purchase. The Sub-fund invests at least 60% of its net assets in debt securities issued by companies that have their head office and/or conduct a predominant part of their economic activities in the USA. The Sub-fund invests up to 40% of its net assets in debt securities issued by companies that have their head office outside the USA, including emerging countries. Investments in companies with their head office in an emerging country will not exceed 10% of the Sub-fund’s net assets. The Sub-fund invests at least 60% of its net assets in debt securities denominated in US dollars. The Sub-fund invests up to 30% of its net assets in debt securities rated sub-investment grade. A debt security rated investment grade at the time of acquisition that subsequently becomes sub-investment grade will not be sold unless, in the opinion of the Manager, it is in the best interests of Unitholders to do so. The Sub-fund may also invest:


− Up to 10% of its net assets in CoCo bonds; − Up to 10% of its net assets in units of UCITS and/or of other UCIs; − Up to 20% of its net assets in money market instruments and cash when market conditions do not

allow sufficient investments with an attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, 10-Years US Treasury Note Futures, 5-Years US Treasury Note Futures, 2-Years US Treasury Note Futures, BTP Futures and Bund Futures. The Sub-fund may also invest in credit default swaps (CDS) up to 20% of its net assets for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities.

271

The net exposure to currencies other than the Sub-fund’s reference currency is limited to 20%. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage effect lower than 200%, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


exchange rate risk A-AZ FUND (Euro Hedged - ACC) EUR HEDGED Hedging against USD B-AZ FUND (Euro Hedged - ACC) EUR HEDGED Hedging against USD A-AZ FUND (Euro non Hedged - ACC) EUR NON HEDGED No B-AZ FUND (Euro non Hedged - ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall issue units of class AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC)


(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro non Hedged - ACC) and A-AZ FUND USD (ACC) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (Euro Hedged - ACC) and B-AZ FUND (Euro non Hedged - ACC) Units: a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

272

Manager: CGM-Compagnie de Gestion Privée Monégasque has been appointed as Manager of the Sub-fund, based on an agreement dated 26 August 2011. CGM-Compagnie de Gestion Privée Monégasque is a corporation (Société Anonyme) established under the laws of the Principality of Monaco, with registered office at 8, Boulevard des Moulins-Escalier des Fleurs 98000-Monaco. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:

• 3 months Libor USD + 1.5% for NON HEDGED Units • 3 months Libor USD + 1.5% + Hedging costs for HEDGED Units

“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

273

Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

274

“Cat Bond Fund Plus” factsheet

General Information

Investment policy: with a view to enhancing the value of its assets in the medium-long term, the Sub-fund aims to reach and keep a performing risk/return profile. The Sub-fund’s objectives will be pursued by mainly investing in instruments of the insurance and finance sectors, including but not limited to:

- Shares, bonds or other bond/capital instruments issued in any world country by re/insurance companies and financial institutions. No geographical restriction is foreseen for this class investments. However, the Fund Management Company envisages a greater attention to American and European companies and financial institutions. This class instruments may include any possible characteristic (debt/equity hybrids, callable issues, puttable issues, convertibles, etc.). The Sub-fund is going to invest in this class while adopting a tactical approach aimed at exploiting the temporary opportunities that the market offers.

- Insurance Linked Securities (ILS). These instruments are issued by insurances and/or reinsurances, as well as by any other risk aggregator, like for instance the dedicated SPV, which qualify as transferable securities according to articles 1(34) and 41(1) of the Grand Ducal Law and Regulation, dated 8 February 2008, and listed or traded on the stock exchange or on any other regulated market, which operates regularly and is recognised and open to the public. The main ILS investment instrument is represented by Cat Bond. They are mostly floating-rate securities whose performance is linked to the occurrence of a catastrophic natural event or one caused by humans, even indirectly. Damage-type Cat Bonds cover the exposition to events such as hurricanes, earthquakes, storms, floods, hail, etc. Life-type Cat Bonds normally regard the events linked to human life, such as mortality, longevity, policy holder behaviour, etc. No restriction is foreseen for geographical reasons or type of insurance risks. Nevertheless, the Sub-fund will not invest in instruments that speculate on the insured party’s longevity. The Fund Management Company aims at preferring the events that are characterised by a rare frequency and a strong intensity (peak exposure) instead of events with a high frequency and a weak intensity (trend). ILS will not necessarily have a rating given by a rating agency. On the other hand, ILS sponsors shall normally have at least a BBB- or Baa3 rating by S&P’s and/or Moody’s or equivalent rating, although in very limited cases sponsors may have a lower rating or no rating at all. Since the Sub-fund invests in securities that are not eligible pursuant to Article 41 (1) a) b) or c) of the 2010 Law and qualify as issues accompanied by a promise of exchange pursuant to the Rule 144 A of the 1933 Securities Act, as amended, the Sub-fund may invest up to 100% of its net assets in these securities provided that: 1. transferable securities issue is accompanied by the engagement to register them with the U.S. Securities and Exchange Commission within one year from their acquisition; and 2. the securities obtained in exchange for Rule 144A securities are, as required by law, officially listed on a stock exchange or traded on another regulated market which operates regularly and is recognised and open to the public When the issue of said Rule 144A securities is not accompanied by the above-mentioned registration undertaking, the Sub-fund may nevertheless invest 100% of its net assets therein if said Rule 144A securities are officially listed on a stock exchange or traded on another regulated market which operates regularly and is recognised and open to the public. The Sub-fund is not subject to any restrictions in terms of asset class, countries, geographical areas, sectors or currencies. The Sub-fund shall also invest in Stock Market and sector indexes of any market all over the world. The Management Company may, at its own discretion, invest in bonds and money market instruments with no restrictions in terms of duration. The Sub-fund can also hold liquid assets or similar instruments. In some exceptional cases, due to the market situation and for a short period, these liquid assets may reach 100% of the Sub-fund assets. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs.

275

For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. However, these hedging activities’ efficacy is not guaranteed. The Sub-fund may also use derivative financial instruments – not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit and other risks) and (iii) for effective management purposes – but also for any investment purpose. Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently suspend subscriptions (including those deriving from conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. Investors are informed of the decision by means of special notice. Investors are recommended to carefully evaluate the specific risks linked to investing in the Sub-fund, which are specified under paragraph III. (7) of Chapter 3 of the Prospectus, as well as in Appendix III. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund will aim at maintaining a leverage lower than 110%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:



exchange rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR


• EUR 100,000 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) • The equivalent in USD of EUR 100,000 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD

(DIS) including all subscription fees and costs (please see Appendix II of this Prospectus). Frequency of net asset value calculation: the N.A.V. shall be calculated twice a month, on the first and fifteenth day of each calendar month that is a full/complete bank business day and is also a day on which national stock exchanges are open in Luxembourg (Valuation Day), or the next business day. The Administrative Agent shall calculate NAV with reference to the price on the last business day (“Valuation Date”) prior to the Valuation Day.

276


- in addition to a brokerage fee of 1% of the amount invested to be paid upon subscription, maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available to investors. For class B-AZ FUND (ACC) and B-AZ FUND (DIS) Units: a brokerage fee of 1% of the amount invested is payable upon subscription and a redemption fee is due, too, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: KATARSIS CAPITAL ADVISORS SA has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 29 August 2011. KATARSIS CAPITAL ADVISORS SA is a corporation (Société Anonyme) established under Swiss law with registered office at Via Carlo Frasca, 5 – 6900 Lugano, Switzerland. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.012% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to Holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of Holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

277

“High Income” factsheet General Information

Investment policy: the Sub-fund shall invest in units of UCITS and/or of other UCIs in the debt security class and providing for revenue distribution, which generated the best results in terms of inflows, assets under management and/or performance in every quarter. The Company shall select its investments based on results provided by databanks specialised in the asset management sector. In order to meet the above criteria, the Sub-fund shall mainly invest – normally up to 100% - in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings oriented towards government and/or supranational securities, emerging debt securities, corporate bonds and/or convertible bonds. The Sub-fund may also invest, to a limited extent, in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings which employ “alternative” investments strategies that are unrelated to financial market trends. The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, currencies, issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. Normally, the Sub-fund does not take any exchange rate risk; where unit types in Euro, i.e. Euro-hedged, are not available, it will usually arrange for all appropriate hedging against exchange rate risk. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:






278

For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.


279

Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

280

“Bond Target 2023 Equity Options” Sub-fund factsheet General Information

Investment policy: Up until the “target date” of December 31, 2023, the Sub-fund’s objective shall be obtaining a positive return, normally by a main investment in a bond portfolio with a residual life in line with the “target date” and secondarily by conducting dynamic management of equity components. The Sub-fund may therefore hold government and supranational bonds in its portfolio as well as corporate bonds with high credit ratings (investment grade) and – to a limited extent – below the investment grade. The Sub-fund is not subject to any restrictions in terms of geographical area or currency denomination. Under normal market conditions the main investment of the Sub-fund consists in bonds, while global exposure to equity markets – including exposure deriving from the use of derivative financial instruments – will range, just as an indication, between 20% and 30% of the Sub-fund net assets and shall be mainly realised through options on stock market indexes, including sector indexes. Global exposure to equity markets could, under particular market conditions, i.e. in case of bullish trend, correspond to a maximum of 80% of the Sub-fund net assets and shall be mainly realised through options on stock market indexes, including sector indexes. The Sub-fund may also invest in high-dividend equity securities and hold liquid assets. Under particular market conditions, The Sub-fund may temporarily hold up to 100% of its own net assets as liquid assets. After reaching the target date, the Sub-fund’s objective shall be to maintain the value of its invested capital. The Manager shall seek to meet this target by investing mainly in money market instruments denominated in Euros, listed or traded on recognised markets or in any other instrument authorised by the laws and regulations in force as established by the Manager. The Sub-fund may also use derivative financial instruments – not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks etc.). For the purposes of effective portfolio management, derivative financial instruments can be used to a minor extent. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The gross exposure to total return swap contracts will not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on financial indices with an exposure to equity. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. Moreover, after the target date, the Company can set a new target date for the following investments made by the Company. In this scenario, it must be noted that the investment limits indicated above will remain unchanged even after implementation of the investment policy following the setting of the new target date.

281

The new target date will be communicated to investors through a notice in a newspaper published in Luxembourg and in newspapers of the countries where the Sub-fund is traded. This factsheet and the KIID of this Sub-fund shall be updated with the new target date. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No D-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period36. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), D AZ FUND (DIS) and A-AZ FUND USD (DIS) Units.

(36) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December


282

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), D-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) and D-AZ FUND (DIS)

• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units, of maximum 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available for the sub-fund Units. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. For D-AZ FUND (DIS) Units: upon redemption/conversion of said Units, a fee is due, calculated on the amount to be redeemed, and will be globally credited to the Sub-fund. This fee will be applied to the amount obtained by multiplying the number of Units to be redeemed (NP) and the "average value of the Investment". Where the "average value of the Investment" is the ratio between




Maximum fee


The maximum fee, indicated for every year, will be reduced by the part of the investment fee already amortised at the beginning of the same year for the Units to be redeemed. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed).

283

Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), D-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

284

“Bond Target 2020 Equity Options” Sub-fund factsheet

General Information Investment policy: in the period between Initial Investment Period end (i.e., 3 months from the date of launch of the Sub-fund, unless exceptions specified in Appendix II concerning the subscription and conversion lists apply) and the "target date" of 31 December 2020, with a view to generating a positive return, the Sub-fund shall normally invest in a portfolio including mainly bonds with a residual life in line with the "target date" and secondarily perform a dynamic management of the equity items. The Sub-fund may therefore hold government and supranational bonds in its portfolio as well as corporate bonds with high credit ratings (investment grade) and – to a limited extent – below the investment grade. The Sub-fund is not subject to any restrictions in terms of geographical area or currency denomination. Although under normal market conditions the main investment consists in bonds, global exposure to equity markets – including exposure deriving from the use of derivative financial instruments – could, under particular market conditions, correspond to a maximum of 80% of the Sub-fund net assets and shall be mainly realised through options on stock market indexes, including sector indexes. The Sub-fund may also invest in high-dividend equity securities and hold liquid assets. Under particular market conditions, The Sub-fund may temporarily hold up to 100% of its own net assets as liquid assets. After reaching the target date, the Sub-fund’s objective shall be to maintain the value of its invested capital. The Manager shall seek to meet this target by investing mainly in money market instruments denominated in Euros, listed or traded on recognised markets or in any other instrument authorised by the laws and regulations in force as established by the Manager. The Sub-fund may also use derivative financial instruments not only (i) for hedging purposes (against market, securities, interest rate, exchange rate, credit and other risks) and (ii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The gross exposure to total return swap contracts will not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on financial indices with an exposure to equity. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. Moreover, after the target date, the Company can set a new target date for the following investments made by the Company. In this scenario, it must be noted that the investment limits indicated above will remain unchanged even after implementation of the investment policy following the setting of the new target date. The new target date will be communicated to investors through a notice in a newspaper published in Luxembourg and in newspapers of the countries where the Sub-fund is traded. This factsheet and the KIID of this Sub-fund shall be updated with the new target date. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference Type of hedging Hedging against exchange

285

currency rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No D-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period37. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), D-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), D-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) and D-AZ FUND (DIS)

• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)



286

including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units, of maximum 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available for the sub-fund Units. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. For D-AZ FUND (DIS) Units: upon redemption/conversion of said Units, a fee is due, calculated on the amount to be redeemed, and will be globally credited to the Sub-fund. This fee will be applied to the amount obtained by multiplying the number of Units to be redeemed (NP) and the "average value of the Investment". Where the "average value of the Investment" is the ratio between




Maximum fee


The maximum fee, indicated for every year, will be reduced by the part of the investment fee already amortised at the beginning of the same year for the Units to be redeemed. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

287

Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per Unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 of this Prospectus) per Unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), D-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of Holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

288

“Bond Target 2021 Equity Options” Sub-fund factsheet38 General Information

Investment policy: in the period between Initial Investment Period end (i.e., 3 months from the date of launch of the Sub-fund, unless exceptions specified in Appendix II concerning the subscription and conversion lists apply) and the "target date" of 31 December 2021, with a view to generating a positive return, the Sub-fund shall normally invest in a portfolio including mainly bonds with a residual life in line with the "target date" and secondarily perform a dynamic management of the equity items. The Sub-fund may therefore hold government and supranational bonds in its portfolio as well as corporate bonds with high credit ratings (investment grade) and – to a limited extent – below the investment grade. The Sub-fund is not subject to any restrictions in terms of geographical area or currency denomination. Although under normal market conditions the main investment consists in bonds, global exposure to equity markets – including exposure deriving from the use of derivative financial instruments – could, under particular market conditions, correspond to a maximum of 80% of the Sub-fund net assets and shall be mainly realised through options on stock market indexes, including sector indexes. The Sub-fund may also invest in high-dividend equity securities and hold liquid assets. Under particular market conditions, The Sub-fund may temporarily hold up to 100% of its own net assets as liquid assets. After reaching the target date, the Sub-fund’s objective shall be to maintain the value of its invested capital. The Manager shall seek to meet this target by investing mainly in money market instruments denominated in Euros, listed or traded on recognised markets or in any other instrument authorised by the laws and regulations in force as established by the Manager. The Sub-fund may also use derivative financial instruments not only (i) for hedging purposes (against market, securities, interest rate, exchange rate, credit and other risks) and (ii) for effective management purposes but also for any investment purpose. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The gross exposure to total return swap contracts will not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on financial indices with an exposure to equity. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. Moreover, after the target date, the Company can set a new target date for the following investments made by the Company. In this scenario, it must be noted that the investment limits indicated above will remain unchanged even after implementation of the investment policy following the setting of the new target date. The new target date will be communicated to investors through a notice in a newspaper published in Luxembourg and in newspapers of the countries where the Sub-fund is traded. This factsheet and the KIID of this Sub-fund shall be updated with the new target date. Base currency of the Sub-fund: EUR 38 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Bond – Target 2021.

289



exchange rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No D-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period39. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) and D-AZ FUND (DIS) Units.



290

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS) and D-AZ FUND (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), D-AZ FUND (DIS)

• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units, of maximum 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of the Prospectus is not available for the sub-fund. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. For D-AZ FUND (DIS) Units: upon redemption/conversion of said Units, a fee is due, calculated on the amount to be redeemed, and will be globally credited to the Sub-fund. This fee will be applied to the amount obtained by multiplying the number of Units to be redeemed (NP) and the "average value of the Investment". Where the "average value of the Investment" is the ratio between




Maximum fee


The maximum fee, indicated for every year, will be reduced by the part of the investment fee already amortised at the beginning of the same year for the Units to be redeemed. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed).

291

Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per Unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per Unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), D-AZ FUND (DIS) Units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

292

"Global Currencies & Rates" factsheet40 General Information

Investment policy: the Sub-fund aims at taking part to the appreciation of the currencies other than the Euro. The Sub-fund may therefore hold government and supranational bonds in its portfolio as well as corporate bonds with investment grade credit ratings and – to a marginal extent – below the investment grade. The Sub-fund will exclusively invest in debt instruments belonging to the non-Euro zone. The financial instruments held in its portfolio shall be only denominated in other currencies than the Euro, either those of emerging countries or those of developed countries. Furthermore, the Sub-fund may hold liquid assets. The Company does not usually hedge exchange rate risks. The Sub-fund may also use derivative financial instruments not only (i) for hedging purposes (against market, interest rate, credit and other risks) and (ii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:




Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s

40 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Bond – Emerging Local Currency FoF.

293

discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period41. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of the Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. (41) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


294

Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of the Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. Distribution Policy: the Sub-fund shall distribute revenue to Holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Specific risk factors: this Sub-fund may invest in currencies of emerging countries, which involves a specific risk, as described under section III of chapter 3 of the Prospectus.

295

“Renminbi Opportunities” factsheet General Information

Investment policy: the Sub-fund is Feeder (the Feeder) of the "AZ Multi Asset – Renminbi Opportunities" Sub-fund (the Master). The Feeder shall permanently invest at least 85% of its assets in said Master. The aim, investment policy and risk profile of the Feeder and Master Sub-funds will be similar. The investment performance of the Feeder and Master will be similar except for the Feeder's assets which are not invested in the Master. The Feeder may invest up to 15% of its assets in one or more of the following items:


of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law. "AZ Multi Asset- Renminbi Opportunities" is a Sub-fund, registered in Luxembourg, of AZ Multi Asset, an undertaking for collective investment in transferable securities governed by Part I of 2010 Law. The investment policy of the Sub-fund aims at increasing capital value. The Master shall invest in Commercial Paper, in debt securities similar to bonds of issuers with credit ratings considerably not lower than investment grade and in other debt instruments, within the limits allowed by law and according to restrictions on investments, as well as in those of high-rated issuers and in money market instruments with fixed and variable rates. Securities shall mainly be denominated in Renminbi off-shore (CNH) and also in US dollars and/or in other currencies. Securities shall be traded on Hong Kong market as well as on other markets. The Master may also use derivative financial instruments for hedging purposes (against market, securities, interest rate, exchange rate, credit and other risks, etc.), it being understood that the Master shall not use derivative instruments for investment purposes and for effective management purposes. The Master Sub-fund usually may invest no more than 10% of its net assets in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings. Under particular market conditions, the reference to a specific rating could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Feeder as well as the Master will aim at maintaining a leverage lower than 100%, calculated on the total of all derivatives' notional amounts. Investors may obtain free copies of the Prospectus of the Master in French at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Further information on the Master and on the contracts regulating the Master-Feeder relationship are available in French, at the registered office of the Company as well as at the dealers in the countries where this Sub-fund is traded. The Feeder shall not bear any direct cost for investing in the Master. The Master Sub-fund in which the Feeder invests shall not bear any cost excluding the service fees or those provided in the Prospectus of the Master. Investment information: the Feeder and the Master are managed by the same Company. As such, and in accordance with the provisions of the 2010 Law, the Company also established specific internal policies relating to the Master and Feeder. These policies describe in particular (i) the basis for redemption, subscription, reimbursement of units as well as their suspension and (ii) how to coordinate the calendar for the calculation and publication of the net asset value.

296

The policies regulating the relationship between the Feeder and the Master are freely available to investors, in French, at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (Euro Hedged - ACC)

EUR CROSS HEDGED Hedging against USD*




EUR NON HEDGED No


EUR NON HEDGED No

A-AZ FUND USD (ACC) USD NON HEDGED No * Unit hedged against the foreign exchange risk related to the indirect exposure to the US dollar (USD), which is the currency in which a significant portion of the securities in the Master's portfolio is denominated. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC) and A-AZ FUND USD (ACC). Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro non Hedged - ACC), A-AZ FUND USD (ACC) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (Euro Hedged - ACC) and B-AZ FUND (Euro non Hedged - ACC) Units: a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in Chapter 11 of the Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AN ZHONG (AZ) INVESTMENT MANAGEMENT HONG KONG Ltd. has been appointed as Investment Advisor for this Sub-fund, based on an agreement dated 26 October 2011. An

297

Zhong (AZ) Investment Management Hong Kong Ltd. is a Limited Company established under Hong Kong SAR law, with registered office at Suite 2702, 27/F, The Centrium, 60 Wyndham Street, Hong Kong. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested. Specific risk factors: this Sub-fund may invest in debt securities usually accompanied by a higher counterparty risk, credit risk and liquidity risk than investment in securities with a high rating. However, the Sub-fund shall invest in debt securities that are in theory liquid but which may sometimes (in special circumstances) be difficult to sell. In any event, the Sub-fund will make sure to have enough liquid assets at any time in order to meet any redemption requests. Any investment in the Chinese market features counterparty risks and exchange rate risks, in addition to the risks generally associated with investing in the markets of emerging countries, such as the political, economic, legal risks as well as market, transaction and execution risks. The Sub-fund will invest in securities denominated in off-shore Renminbi (CNH) traded on Hong Kong market, that are currently limited because the offshore Renminbi bond market is still being developed. As a result, the Sub-fund can be required to invest a substantial portion of its assets in Renminbi deposits and this can affect the Sub-fund performance. At present, the Renminbi is not a freely convertible currency as it is subject to exchange control policies and repatriation restrictions imposed by the Chinese government, thus exposing the Sub-fund to exchange rate risk and volatility.

298

“Renminbi Opportunities – Fixed Income” factsheet General Information

Investment policy: the Sub-fund is Feeder of the "AZ Multi Asset – Renminbi Opportunities Fixed Income" Sub-fund (the Master). The Feeder shall permanently invest at least 85% of its assets in said Master. The aim, investment policy and risk profile of the Feeder and Master Sub-funds are similar. The investment performance of the Feeder and Master is similar except for the Feeder's assets which are not invested in the Master. The Feeder may invest up to 15% of its assets in one or more of the following items:


of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law. "AZ Multi Asset-Renminbi Opportunities Fixed Income" is a Sub-fund registered in Luxembourg of AZ Multi Asset, an undertaking for collective investment in transferable securities governed by Part I of 2010 Law. The investment policy of the Sub-fund aims at increasing capital value. The Master Sub-fund shall invest in Commercial Paper, in debt securities similar to bonds of issuers with significantly first-quality credit ratings and in other debt instruments, within the limits allowed by the Law and according to restrictions on investments, as well as in those of high-rated issuers and in money market instruments mainly with fixed rates and to a minor extent with variable rates. Securities shall mainly be denominated in Renminbi off-shore (CNH) and also in US dollars and/or in other currencies. Securities shall be traded on Hong Kong market as well as on other markets. The Master Sub-fund may also use derivative financial instruments for hedging purposes (against market, interest rate, exchange rate, credit and other risks) and for effective management purposes. The Master Sub-fund usually may invest no more than 10% of its net assets in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings. Under particular market conditions, the reference to a specific rating could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Feeder as well as the Master will aim at maintaining a leverage lower than 100%, calculated on the total of all derivatives' notional amounts. Investors may obtain free copies of the Prospectus of the Master in French at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Further information on the Master and on the contracts regulating the Master-Feeder relationship are available in French, at the registered office of the Company as well as at the dealers in the countries where this Sub-fund is traded. The Feeder shall not bear any direct cost for investing in the Master. The Master Sub-fund in which the Feeder invests shall not bear any costs excluding the service fees that are provided in the Prospectus of the Master. Investment information: the Feeder and the Master are managed by the same Company. As such, and in accordance with the provisions of the 2010 Law, the Company also established specific internal policies relating to the Master and Feeder. These policies describe in particular (i) the basis for redemption, subscription, reimbursement of units as well as their suspension and (ii) how to coordinate the calendar for the calculation and publication of the net asset value.

299

The policies regulating the relationship between the Feeder and the Master are freely available to investors, in French, at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


exchange rate risk A-AZ FUND (Euro Hedged - ACC)





EUR NON HEDGED No


EUR NON HEDGED No

A-AZ FUND USD (ACC) USD NON HEDGED No * Unit hedged against the foreign exchange risk related to the indirect exposure to the US dollar (USD), which is the currency in which a significant portion of the securities in the Master's portfolio is denominated. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (Euro Hedged - ACC), B-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro non Hedged - ACC), B-AZ FUND (Euro non Hedged - ACC) and A-AZ FUND USD (ACC). Minimum initial subscription amount: the minimum initial subscription amount is:


• USD 1,500 for Units of class A-AZ FUND USD (ACC) (except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of the Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (Euro Hedged - ACC), A-AZ FUND (Euro non Hedged - ACC), and A-AZ FUND USD (ACC) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (Euro Hedged - ACC) and B-AZ FUND (Euro non Hedged - ACC) Units: a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

300

Investment Advisor: AN ZHONG (AZ) INVESTMENT MANAGEMENT HONG KONG Ltd. has been appointed as Investment Advisor for this Sub-fund, based on an agreement dated 26 October 2011. An Zhong (AZ) Investment Management Hong Kong Ltd. is a Limited Company established under Hong Kong SAR law, with registered office at Suite 2702, 27/F, The Centrium, 60 Wyndham Street, Hong Kong. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested. Specific risk factors: this Sub-fund may invest in debt securities usually accompanied by a higher counterparty risk, credit risk and liquidity risk than investment in securities with a high rating. However, the Sub-fund shall invest in debt securities that are in theory liquid but which may sometimes (in special circumstances) be difficult to sell. In any event, the Sub-fund will make sure to have enough liquid assets at any time in order to meet any redemption requests. Any investment in the Chinese market features counterparty risks and exchange rate risks, in addition to the risks generally associated with investing in the markets of emerging countries, such as the political, economic, legal risks as well as market, transaction and execution risks. The Sub-fund will invest in securities denominated in off-shore Renminbi (CNH) traded on Hong Kong market, that are currently limited because the offshore Renminbi bond market is still being developed. As a result, the Sub-fund can be required to invest a substantial portion of its assets in Renminbi deposits and this can affect the Sub-fund performance. At present, the Renminbi is not a freely convertible currency as it is subject to exchange control policies and repatriation restrictions imposed by the Chinese government, thus exposing the Sub-fund to exchange rate risk and volatility.

301

“Global Sukuk” factsheet General Information

Investment policy: the Sub-fund is Feeder of the "AZ Multi Asset – Global Sukuk" Sub-fund (the Master). The Feeder shall permanently invest at least 85% of its assets in said Master. The aim, investment policy and risk profile of the Feeder and Master Sub-funds are similar. The investment performance of the Feeder and Master is similar except for the Feeder's assets which are not invested in the Master. The Feeder may invest up to 15% of its assets in one or more of the following items:


of article 41(1)(g) and article 42 (2) and (3) of the 2010 Law. "AZ Multi Asset-Global Sukuk" is a Sub-fund, registered in Luxembourg, of AZ Multi Asset, an undertaking for collective investment in transferable securities governed by Part I of 2010 Law. The investment policy of the Sub-fund aims at increasing capital value. With a view to enhancing the value of its assets in the medium/long term, the Master shall normally invest in Islamic securities instruments “Sukuk” (fixed floating rate, index-linked, subordinated and convertible securities), including but not limited to government and/or supranational securities, emerging credit instruments, corporate securities and/or convertible securities compliant with Sharia principles. Issuing companies of the above securities will normally have their registered offices in an emerging country belonging to the Middle-East and Asian areas or will carry out a significant part of their business in such countries. The remaining part of the portfolio will not be subject to any restriction in terms of countries and geographical areas. Moreover, the Master will not be subject to any restrictions in terms of sectors, currencies, duration or issuer’s rating. The Master may keep up to 20% of its total assets, at any time, in non-remunerated Sharia compliant cash accounts and Sharia compliant money market instruments. Under particular market conditions and for the purpose of liquidity management, the Master may invest into Sharia compliant certificates of deposit – up to 100% of its net assets – issued by primary international banking institutions. The Master may use Sharia compliant financial instruments for hedging purposes according to the risk profile of the Sub-fund. Such instruments may also not be negotiated on regulated markets (OTC). All the financial instruments to be used for hedging purposes comply with Sharia guidelines. The Feeder as well as the Master will aim at maintaining a leverage lower than 100%, calculated on the total of all Sharia compliant derivatives' notional amounts. Investors may obtain free copies of the Prospectus of the Master in French at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Further information on the Master and on the contracts regulating the Master-Feeder relationship are available in French, at the registered office of the Company as well as at the dealers in the countries where this Sub-fund is traded. The Feeder shall not bear any direct cost for investing in the Master. The Master Sub-fund in which the Feeder invests shall not bear any cost excluding the service fees or those provided in the Prospectus of the Master. Investment information: the Feeder and the Master are managed by the same Company. As such, and in accordance with the provisions of the 2010 Law, the Company also established specific internal policies relating to the Master and Feeder.

302

These policies describe in particular (i) the basis for redemption, subscription, reimbursement of units as well as their suspension and (ii) how to coordinate the calendar for the calculation and publication of the net asset value. The policies regulating the relationship between the Feeder and the Master are freely available to investors, in French, at the registered office of the Company (AZ Fund Management S.A, 35, avenue Monterey, L-2163 Luxembourg). Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:



rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period42. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi.



303

This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:




subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment advisors: under the relevant agreements, established on the basis of the specific geographical and territorial knowledge and experience, the following were appointed as Investment Advisors of this Sub-fund: • AZIMUT PORTFÖY YÖNETIMI A.Ş. has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZIMUT PORTFÖY YÖNETIMI A.Ş. is a Joint Stock Company established under Turkish law and with registered office at Büyükdere Caddesi Kempinski Residences Astoria No: 127 A Blok Kat: 4 Esentepe / Şişli, Istanbul (Turkey).

• MAYBANK ASSET MANAGEMENT SINGAPORE PTE LTD. has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. MAYBANK ASSET MANAGEMENT SINGAPORE PTE LTD was established as Joint Stock Company under Singapore law, with registered office at 50 North Canal Road, #03-01, Singapore 059304.

304

• AZIMUT (DIFC) LTD has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZIMUT (DIFC) LTD was established as a limited liability company under Dubai law, having its registered office in Central Parks Towers, Unit 45, Flr. 16, Dubai International Financial Centre, PO Box 506944, Dubai, United Arab Emirates

Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per Unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per Unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. Every Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. These fees are paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to Holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested.

305

"AZ Bond – Enhanced Yield" Sub-fund factsheet General Information

Investment policy: the investment objective of the Sub-fund is to provide a positive rate of return higher than money markets one and a medium-term capital gain through mixed investments in government bonds denominated in Euro with a maturity of more than two years and bank deposits with a residual maturity of up to 12 months. The Sub-fund's investment strategy mainly consists of maximising the total return of the Sub-fund in relation to its average maturity, with a good degree of diversification. The Sub-fund invests in debt securities denominated in euros, issued by European governments or European governmental authorities, directly or indirectly by investing in units of UCITS and/or other UCIs or by using derivative financial instruments on interest rates and/or on debt securities. The Sub-fund invests: - at least 15% and up to 40% of its net assets in debt securities with a residual maturity of more than 24

months; - up to 20% of its net assets in debt securities with a residual maturity of less than 24 months; - up to 10% of its net assets in units of UCITS and/or other UCIs and/or ETFs generally investing in

investment grade corporate bonds and government bonds denominated in euro, including inflation-linked bonds;

- up to 75% of its net assets in bank deposits in accordance with article 41(1)f) of the 2010 Law. The Sub-fund shall not invest in debt securities classified as asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds, or defaulted securities, or those experiencing any difficulty at the time of purchase. The Sub-fund uses derivative financial instruments for investment purposes in order to implement its investment policy and may have long or short exposures (depending on market conditions) to the derivative financial instruments listed below. The derivative financial instruments mainly used consist of interest rate futures and debt securities. The base currency of the Sub-fund is the Euro (EUR) and the Sub-fund does not intend to hedge the currency risk against other currencies of the investments in its portfolio. In addition, the Sub-fund will use currency futures, currency swaps and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED class). The Sub-fund tends to maintain a leverage lower than 75 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 2) 3) 6) and 10) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


exchange rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR

306



including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: For class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units there is no subscription or redemption fee, unless indicated in Appendix II of this Prospectus. Multi-annual investment plan described in chapter 9 of this Prospectus is not available. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Additional variable management fee: any additional variable management fee payable for this Sub-fund amounts to 0.004% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

307

“AZ Alternative – Capital Enhanced” Sub-fund factsheet

General Information INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund is actively managed and seeks to achieve its investment objective by using systematic option strategies with indicative 12-month maturities and a primary focus on developed country markets. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests in long and/or short positions in equity options, after assessing the intrinsic risk of the options strategies in terms of gain and premium (paid/received) in order to generate a positive alpha benefiting from the premium included in the option price. The Sub-fund may also invest in long and/or short positions in equity futures, including, among others, S&P 500 Index and Eurostoxx 50 Index, in order to adjust the overall net exposure to the shares in the portfolio. In order to implement its investment strategy, the Sub-fund will use a portion of its net assets for the exchange of warrants (collateral) in respect of derivative financial instruments. The amount of warrants (collateral) will depend on market volatility and the delta-adjusted exposure of the derivative instrument’s strategy. The portion of the Sub-fund’s net assets not used as a warrant (collateral) will be invested in low volatility assets, such as debt securities, money market instruments and cash, as more fully described below. The Sub-fund may also invest:

- between 50% and 100% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries;

- up to 49% of its net assets in cash when market conditions do not allow sufficient investments with an attractive return potential and risk profile to be identified;

- up to 30% of its net assets in debt securities issued by companies having their head office in developed countries;

- up to 30% of its assets in debt securities rated sub-investment grade; - up to 10% of its assets in units of UCITS and/or other UCIs.

The Sub-fund uses derivative financial instruments, as listed below, for investment purposes in order to implement its investment policy and/or to hedge risks. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 600 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR

308



rate risk A-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period43. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS) and B-AZ FUND (DIS) Units. Unit class: the Sub-fund shall issue Units of the following classes: A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) • USD 1,500 for Units of class A-AZ FUND USD (ACC)

including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. (43) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


309

Subscriptions and Redemptions: For class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (ACC) Units there is no subscription or redemption fee, unless indicated in Appendix II of this Prospectus. Multi-annual investment plan described in chapter 9 of this Prospectus is not available. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 04 May 2009 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fees: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.12% of Sub-fund net assets. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



310

“Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: The Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS) and B-AZ FUND (DIS) Units and shall reinvest revenue of holders of the same classes A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed yearly, according to the following period: 1 January - 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

311

“Italian Excellence 3.0” factsheet General Information

Investment policy: the Sub-fund pursues the objective of a moderate increase in the value of the capital, mainly investing in the Italian company system, with a medium/long-term perspective. Until December 31, 2018, the Sub-fund qualified as a qualified investment for the creation of long-term individual savings plans under Italian law no. 232/16 (known as “piani di risparmio a lungo termine “). Unit Holders who have invested before December 31, 2018 and who have continued to invest since then, shall still enjoy tax advantages indicated in this law. The investment must be made in each calendar year as follows: at least 70% of the Sub-fund's net assets in shares, bonds, units of UCITS and/or other UCIs (PIR), whether or not traded on regulated markets or multilateral trading platforms, issued by or concluded with undertakings which do other business than real property, resident in the territory of the Italian State, in accordance with article 73 of the Italian Law on income taxes (Testo unico delle imposte sui redditi), under the decree of the President of the Italian Republic no. 917 of 22 December 1986 or in the Member States of the European Union or in the States forming part of the agreement on the European Economic Area with permanent establishments in Italy. The Sub-fund may invest up to 5% of its net assets in contingent convertible bonds. Equity investments may represent up to 30% of the Sub-fund's net assets. The Sub-fund must be invested for at least 21% of its net assets in financial instruments of companies other than those included in the FTSE MIB index of the Italian Stock Exchange or equivalent indices of other regulated markets. Qualified investments also include units of UCITS and/or other UCIs of issuers established on the Italian territory or in another EU Member State or in the States forming part of the agreement on the European Economic Area, which in turn will invest at least 70% of the portfolio in these financial instruments referred to in the second paragraph above. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. Up to 30% of the Sub-fund's net assets may be invested in financial instruments other than those referred to above. No more than 10% of the portfolio may be invested in a single financial instrument of the same issuer or concluded with the same counterparty or with another company of the same group as the issuer or the counterparty or in deposits and current accounts. No investment may be made in financial instruments issued by or concluded with residents in countries or territories other than those which permit an adequate exchange of information. The Sub-fund may also use derivative financial instruments for risk hedging purposes only (against market, equity, interest rate, exchange rate, credit and other risks). For the purposes of effective portfolio management, derivative financial instruments can be used to an accessory extent. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No AP AZ FUND (ACC) EUR NON HEDGED No

312

B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), AP AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), AP AZ FUND (ACC) and B-AZ FUND (ACC), • USD 1,500 for Units of class A-AZ FUND USD (ACC)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), AP AZ FUND (ACC), A-AZ FUND USD (ACC) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Manager for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. Any additional variable management fee amounts to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis.

313

The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Exclusively for Units of class AP AZ FUND (ACC), also a service fee is applicable and due to the Company, equal to 0.20% of Sub-fund net assets Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested

314


Investment policy: the Sub-fund pursues the objective of an increase in capital value, mainly investing in the Italian company system, with a medium/long-term perspective. Until December 31, 2018, the Sub-fund qualified as a qualified investment for the creation of long-term individual savings plans under Italian law no. 232/16 (known as “piani di risparmio a lungo termine “). Unit Holders who have invested before December 31, 2018 and who have continued to invest since then, shall still enjoy tax advantages indicated in this law. The investment must be made in each calendar year as follows: at least 70% of the Sub-fund's net assets in shares, bonds, units of UCITS and/or other UCIs (PIR), whether or not traded on regulated markets or multilateral trading platforms, issued by or concluded with undertakings which do other business than real property, resident in the territory of the Italian State, in accordance with article 73 of the Italian Law on income taxes (Testo unico delle imposte sui redditi), under the decree of the President of the Italian Republic no. 917 of 22 December 1986 or in the Member States of the European Union or in the States forming part of the agreement on the European Economic Area with permanent establishments in Italy. The Sub-fund may invest up to 5% of its net assets in contingent convertible bonds. Equity investments may represent up to 70% of the Sub-fund's net assets. The Sub-fund must be invested for at least 21% of its net assets in financial instruments of companies other than those included in the FTSE MIB index of the Italian Stock Exchange or equivalent indices of other regulated markets. Qualified investments also include units of UCITS and/or other UCIs of issuers established on the Italian territory or in another EU Member State or in the States forming part of the agreement on the European Economic Area, which in turn will invest at least 70% of the portfolio in these financial instruments referred to in the second paragraph above. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. Up to 30% of the Sub-fund's net assets may be invested in financial instruments other than those referred to above. No more than 10% of the portfolio may be invested in a single financial instrument of the same issuer or concluded with the same counterparty or with another company of the same group as the issuer or the counterparty or in deposits and current accounts. No investment may be made in financial instruments issued by or concluded with residents in countries or territories other than those which permit an adequate exchange of information. The Sub-fund may also use derivative financial instruments for risk hedging purposes only (against market, equity, interest rate, exchange rate, credit and other risks). For the purposes of effective portfolio management, derivative financial instruments can be used to an accessory extent. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No AP AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR

315

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), AP AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.


• EUR 1,500 for Units of class A-AZ FUND (ACC), AP AZ FUND (ACC) and B-AZ FUND (ACC), • USD 1,500 for Units of class A-AZ FUND USD (ACC)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), AP AZ FUND (ACC), A-AZ FUND USD (ACC) Units:


subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Manager for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. Any additional variable management fee amounts to 0.006% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis.

316

The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Exclusively for Units of class AP AZ FUND (ACC), also a service fee is applicable and due to the Company, equal to 0.20% of Sub-fund net assets. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. Since the net assets of the Sub-fund are invested in shares or units of other UCIs established under Luxembourg law and subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part of assets thus invested

317

“Alternative Carry Opportunity” factsheet44 General Information

Investment policy: the Sub-fund has the objective to offer an investment with positive annual return compared to a very low volatility. For this purpose, the Sub-fund shall mainly invest in units of UCITS and/or of other UCIs. The Sub-fund may thus invest in equity, bonds and money market instruments. The Sub-fund may invest up to 5% of its net assets in contingent convertible bonds. Each of the underlying UCITS and/or other UCIs may invest in a wide range of products, including shares, bonds, money market instruments and securities having properties and commodities as underlying assets. The Sub-fund may also invest, even as main investment, in units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings belonging to the Azimut Group, characterised by investment strategies that are unrelated to financial market trends. The Sub-fund may invest in units of UCITS and/or other UCIs belonging to the Azimut Group, including Fund sub-funds. The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, currencies, issuers’ rating. Furthermore, the Sub-fund may hold liquid assets. Exchange rate risk shall normally be hedged for at least 60% of the Sub-fund net assets. The Sub-fund may also use derivative financial instruments – not only on the above-mentioned instruments for direct investment purposes, but also for hedging purposes (against market, securities, interest rate, exchange rate, credit risks etc.). For the purposes of effective portfolio management, derivative financial instruments can be used to an accessory extent. The derivative financial instruments used shall mainly be listed derivative financial instruments (options listed with underlying stock exchange indexes, currencies and rates). These derivative financial instruments shall be used on an accessory basis. Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently suspend subscriptions (including conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. Investors are informed of the decision by means of special notice. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR

44 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Alternative – Multistrategy FoF.

318

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period45. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.


• EUR 1,500 for Units of class A-AZ FUND (ACC) and A-AZ FUND (DIS), • USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. (45) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. This management fee will apply to the part of assets not represented by Undertakings for Collective Investments in Transferable Securities and/or UCIs belonging to the Azimut Group. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. This additional variable management fees will apply to the part of assets not represented by Undertakings for Collective Investments in Transferable Securities and/or UCIs belonging to the Azimut Group. Distribution policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of holders of class A-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

320

"Munis Yield" factsheet General Information

Investment policy: with a view to enhancing the value of its assets in the medium/long term, the Sub-fund shall invest in bond financial instruments (fixed and floating rate, zero coupon, convertible and CPI linked). In this regard, the Sub-fund will normally invest primarily in US utility and/or US treasury bonds. Exposure to exchange rate risk shall be managed in a dynamic and flexible manner. Bonds held by the Sub-fund shall generally have a high rating (investment grade). The Sub-fund is not subject to any restrictions in terms of sectors or duration. The Sub-fund may also hold liquid assets and money market instruments to an ancillary extent. The reference to a specific rating made in this factsheet shall be applied only upon purchase of the mentioned transferable security. Moreover, even if the Manager must generally respect this specific rating, it can deviate from this general rule if that is in the interest of the unitholders or under exceptional market conditions. The Sub-fund may also use derivative financial instruments only for hedging purposes (against interest rate, exchange rate, credit and other risks). The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


exchange rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND TW (ACC) EUR NON HEDGED No B-AZ FUND TW (ACC) EUR NON HEDGED No A-AZ FUND TW (DIS) EUR NON HEDGED No B-AZ FUND TW (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No A-AZ FUND TW USD (ACC) USD NON HEDGED No B-AZ FUND TW USD (ACC) USD NON HEDGED No A-AZ FUND TW USD (DIS) USD NON HEDGED No B-AZ FUND TW USD (DIS) USD NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s

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discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period46. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing Units of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW (DIS), B-AZ FUND TW (DIS), A-AZ FUND TW USD (ACC), B-AZ FUND TW USD (ACC), A-AZ FUND TW USD (DIS) and B-AZ FUND TW USD (DIS). Unit class: the Sub-fund shall issue Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW (DIS), B-AZ FUND TW (DIS), A-AZ FUND TW USD (ACC), B-AZ FUND TW USD (ACC), A-AZ FUND TW USD (DIS) and B-AZ FUND TW USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.


• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW (DIS) and B-AZ FUND TW (DIS)

• USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS), A-AZ FUND TW USD (ACC), B-AZ FUND TW USD (ACC), A-AZ FUND TW USD (DIS) and B-AZ FUND TW USD (DIS) (except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units: (46) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. A subscription fee is payable for class A-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC), A-AZ FUND TW (DIS) and A-AZ FUND TW USD (DIS) Units, of maximum 5% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). For class B-AZ FUND (ACC), B-AZ FUND (DIS), B-AZ FUND TW (ACC), B-AZ FUND TW (DIS), B-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) it is also foreseen to pay an additional variable management fee amounting to 0.005% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per Unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per Unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis.

For units of class AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC), B-AZ FUND TW USD (ACC), AZ FUND TW (DIS), B-AZ FUND TW (DIS), A-AZ FUND TW USD (DIS) and B-AZ FUND TW USD (DIS), an additional variable management fee is payable in the following instances:


• if Unit value calculated at the last business day of the current calendar year is higher than the Unit value calculated at the last business day of the previous calendar year. When both the above conditions are met, the additional fee will be 10% of said over-performance, multiplied by the number of existing Units at the Valuation Date to which the calculation of the fee refers. This additional fee is withdrawn every year from the Sub-fund assets, on the first business day of the calendar year following the reference period. The additional variable management fee is applied daily with the provision of the day to which the calculation refers being accrued as above indicated. Every day, the provision of the previous day will be credited and, where appropriate, the provision of the day to which the calculation refers will be debited so as to calculate the total value of the Sub-fund.

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Reference index: 100% S&P Municipal Bond Intermediate Index TR (ticker: SAPIINT Index). The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND TW (DIS), B-AZ FUND TW (DIS), A-AZ FUND TW USD (DIS) and B-AZ FUND TW USD (DIS) Units, and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

324

“Global Infrastructure” Sub-fund factsheet General Information

Investment policy: the Sub-fund shall invest in shares, American Depositary Receipt (ADR), Global Depositary Receipt (GDR) or equity-related securities (particularly convertible bonds, warrants and investment certificates), in bonds and money market instruments with a view to enhancing the value of its assets in the medium/long term. The Sub-fund will invest primarily in securities issued by global companies holding and/or managing operations in the infrastructure sector such as, but not limited to, utilities (water, electricity, gas, waste collection), transportation and storage of raw materials, toll roads, airports, telecommunications, ports, railways and any other socio-economic infrastructure. The Sub-fund is not subject to any restrictions in terms of geographical areas, capitalisation, duration, and/or issuer’s rating. The Sub-fund may also hold ancillary liquid assets. The financial instruments in the portfolio shall be denominated in all currencies of OECD Member States. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks and stock price fluctuations. The Sub-fund may also use derivative financial instruments – not only on the above-mentioned instruments for direct investment purposes, but also for hedging purposes (against market, securities, interest rate, exchange rate, credit risks etc.). For the purposes of effective portfolio management, derivative financial instruments can be used to an accessory extent. The derivative financial instruments used will be mainly futures listed, currency forwards and contracts for differences. The proportion of derivative financial instruments used from time to time will depend on the proportion of the Sub-fund's investments in equities, in order to optimise equity exposure and exchange rate risk hedging. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 300%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:

• in Euro ("EUR") for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND TW (ACC) and B-AZ FUND TW (ACC)

• in US dollars (USD) for Units of class A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND TW (ACC) EUR NON HEDGED No B-AZ FUND TW (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No

325

A-AZ FUND TW USD (ACC) USD NON HEDGED No B-AZ FUND TW USD (ACC) USD NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period47. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) Units. Unit class: the Sub-fund shall issue Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND TW (ACC) and B-AZ FUND TW (ACC) • USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC)



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subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in Chapter 9 of the Prospectus is not available in Luxembourg. A subscription fee is payable for class A-AZ FUND TW (ACC) and A-AZ FUND TW USD (ACC) Units, of maximum 5% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). For Units of class B-AZ FUND (ACC), B-AZ FUND (DIS), B-AZ FUND TW (ACC) and B-AZ FUND TW USD (ACC), a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) it is also foreseen to pay an additional variable management fee amounting to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per Unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per Unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis.

For Units of class AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC), an additional variable management fee is payable in the following instances:


327

• if Unit value calculated at the last business day of the current calendar year is higher than the Unit value calculated at the last business day of the previous calendar year. When both the above conditions are met, the additional fee will be 10% of said over-performance, multiplied by the number of existing Units at the Valuation Date to which the calculation of the fee refers. This additional fee is withdrawn every year from the Sub-fund assets, on the first business day of the calendar year following the reference period. The additional variable management fee is applied daily with the provision of the day to which the calculation refers being accrued as above indicated. Every day, the provision of the previous day will be credited and, where appropriate, the provision of the day to which the calculation refers will be debited so as to calculate the total value of the Sub-fund. Reference index: 100% Euribor 3 months +150bps. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units, and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND TW (ACC), B-AZ FUND TW (ACC), A-AZ FUND TW USD (ACC) and B-AZ FUND TW USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter

328

"AZ Alternative - Smart Risk Premia" factsheet General Information

OBJECTIVE AND INVESTMENT POLICY: The investment objective of the Sub-fund is to achieve medium to long-term capital growth by generating positive returns with a low correlation to traditional equity portfolios.

To achieve its investment objective, the Sub-fund will implement a "Long/Short Equity Market Neutral" systematic investment strategy aimed at capturing premiums linked to multiple investment styles in equity markets while neutralising exposure to these equity markets.

The universe of investment styles includes, among other things:

- Momentum: refers to assets with positive risk-adjusted returns over an extended period; - Carry: refers to assets with increased growth and high return potential; - Value: refers to assets that are undervalued in relation to their accounting, economic and financial

fundamentals; - Size: refers to assets with a high market capitalisation; - Quality: refers to assets with strong accounting, economic and financial data; - Low Risk: refers to assets with low volatility or beta. Each investment style may be long or short, depending on the risk premium model. By identifying the possibility of extracting a positive premium from an investment style, the Sub-fund will take long positions on assets having the characteristics of the investment styles described above and short positions in the reference market (thus having a net exposure to the equity market close to zero). If the possibility of having a negative premium linked to an investment style is identified, the Sub-fund will take short positions on assets having the characteristics of the investment styles described above and long positions in the reference market (thus always having a net exposure to the equity market close to zero). The Sub-fund invests at least 60% of its net assets, directly or indirectly through the use of derivative financial instruments, in shares and other equity-related securities issued by companies having their registered office in an OECD country or which are listed or traded on a regulated market in an OECD country. In circumstances where market conditions do not allow the Company to identify sufficient opportunities to capture risk premiums as described above (for example if the risk premium model gives a neutral signal), the Sub-fund may, on an ancillary basis, invest up to 40% of its net assets in - investment grade debt securities issued by companies having their registered office in an OECD country

or which are listed or traded on a regulated market in an OECD country; - investment grade debt securities issued by governments or government authorities belonging to an OECD

country or which are listed or traded on a regulated market in an OECD country; - units of UCITS and/or other UCIs classified as equity, bond or money market type; - money market instruments issued by investment grade-rated entities; - cash. The Sub-fund may not invest more than 10 % of its net assets in units of UCITS and/or of other UCIs. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds, or defaulted securities, or those experiencing any difficulty at the time of purchase. The Sub-fund uses derivative financial instruments for investment purposes in order to implement its investment policy and to hedge risks. The derivative financial instruments mainly used are as follows:

- futures on equity indices, including in particular the long and short indices Russell 1000 Future and Eurostoxx 50 Future to maintain an overall net exposure to equities close to zero (so-called Market Neutral approach) and to take specific exposure to premiums linked to investment styles;

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- futures on premium indices linked to investment styles in equity markets, including, inter alia, the long and short indices iSTOXX EU MOMENTUM, iSTOXX EU CARRY, iSTOXX EU QUALITY, iSTOXX EU SIZE, iSTOXX VALUE and iSTOXX EU LOW RISK, in accordance with the investment strategy of the Sub-fund;

- futures on bonds or interest rates including long and short positions in order to achieve the required portfolio duration;

- financial contracts for differences (CFDs) on equity indices and/or equities and/or ETFs in order to take specific exposure to premiums linked to investment styles;

- options on equity indices and/or bond indices in order to control the overall portfolio risk with a specific focus on maturity and market conditions.

The base currency of the Sub-fund is the Euro (EUR) and the Sub-fund does not intend to hedge the currency risk against other currencies of the investments in its portfolio. The Sub-fund may use currency futures, currency swaps and currency options for investment purposes in order to dynamically adjust the overall currency exposure of the portfolio according to market opportunities. In addition, the Sub-fund will use currency futures, currency swaps and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED class). The Sub-fund tends to maintain a leverage lower than 400%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: In addition to the risk factors set out in the general section of the Prospectus in section III "Risk Factors" of chapter 3, the following specific risk factors are associated with the Sub-fund's investments: - Leverage risks: the Sub-fund may achieve a certain degree of leverage by using derivative financial

instruments in order to implement its investment strategy. The use of leverage creates particular risks and may significantly increase the investment risk of the Sub-fund. Leverage represents the potential for higher performance and total return, but also increases the Sub-fund's exposure to a higher risk of loss than a non-leveraged vehicle.

- Risks related to investment style factors: factors specific to an investment style employed by the Manager may not produce the best results in the medium and long term, and may result in higher volatility.

- Risks linked to strategies relying on long/short positions: this kind of strategy seeks to generate capital gains by establishing long and short positions, by resorting to derivative financial instruments, by buying securities considered to be undervalued and selling securities deemed to be overvalued so as to generate a return and reduce the market risk in general. These strategies shall only be successful if the market ultimately acknowledges this undervaluation or overvaluation in the price of the security, which will not necessarily be the case, or may only take place over longer periods of time. These strategies may result in heavy losses.

Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference currency Type of hedging Hedging against exchange rate

risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR


o EUR 1,500 for Units of class A-AZ FUND (ACC) and B-AZ FUND (ACC)

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o USD 1,500 for Units of class A-AZ FUND USD (ACC)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND USD (ACC) Units:



Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. This management fee will apply to the part of assets not represented by Undertakings for Collective Investments in Transferable Securities and/or UCIs belonging to the Azimut Group. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed.

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“Reference index” means: • 3 months Euribor + 1.5% for NON HEDGED Units • 3 months Euribor + 1.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. This additional variable management fees will apply to the part of assets not represented by Undertakings for Collective Investments in Transferable Securities and/or UCIs belonging to the Azimut Group. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. DISTRIBUTION POLICY: the Sub-fund shall apply an income capitalisation policy. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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"AZ Equity - New World Opportunities" factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies around the world, including emerging countries. The relative weighting of the Sub-fund’s portfolio between developed and emerging countries will depend not only on the country's weightings among the world's leading equity and other similar securities but also on their relative contribution to global gross domestic product (GDP), so that the focus could be on emerging countries. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests directly or indirectly at least 70% of its net assets in shares and other equity-related securities issued by companies worldwide. Indirect exposure to these companies is obtained by investing in units of UCITS and/or other UCIs investing in shares and other equity-related securities. The Sub-fund may invest up to 50% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund invests directly or indirectly between 20% and 60% of its net assets in shares and other equity-related securities issued by companies that have their head office and/or conduct a predominant part of their economic activities in emerging countries. For the purposes of the Sub-fund’s investment policy, Hong Kong and Singapore will be considered as emerging countries. The Sub-fund invests up to 20% of its net assets directly in Chinese class A shares listed in Mainland China (through the Shanghai-Hong Kong Stock Connect or the Shenzhen-Hong Kong Stock Connect) or in Hong Kong or through American Depositary Receipts (ADR) listed in the United States, and indirectly through futures on equity indices and other similar securities linked to the Chinese stock exchange including, among others, the FTSE CHINA A50 index traded in Singapore. The Sub-fund may also invest:

- up to 20% of its net assets in debt securities issued by governments, supranational institutions or governmental bodies worldwide and/or companies worldwide;

- up to 10% in debt securities rated sub-investment grade; - up to 30% of its net assets in money market instruments and/or cash when market conditions do not

allow sufficient investments with an attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices and other similar securities, including, among others, S&P500 Future, Eurostoxx 50 Future, Nikkei 225 Future, MSCI Emerging Markets (EM) Index Futures, Hang Seng China Enterprises Index (HSCEI) Futures and Ibovespa Futures. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities.

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In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type) LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 300 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraph 5) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference currency Type of hedging Hedging against

exchange rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.


o EUR 1,500 for Units of class A-AZ FUND (ACC) and B-AZ FUND (ACC) o USD 1,500 for Units of class A-AZ FUND USD (ACC)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND USD (ACC) Units:



Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For Units belonging to class B AZ FUND (ACC) there is a redemption fee calculated on the amount of the redemption, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

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MANAGERS: under the relevant agreements, with reference to specific geographical and territorial experiences, the following are appointed as Managers of this Sub-fund:

• AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121, Italy;

• AZ INVESTMENT MANAGEMENT SINGAPORE Ltd is a Limited Company established under Singapore law. Its registered office is at 9 Temasek Boulevard, Suntec Tower 2, #44-02, Singapore 038989;

• AZ QUEST INVESTIMENTOS LTDA is a Limited Company established under Brazilian law with registered office at Rua Leopoldo Couto de Magalhaes Junior, 758, 15th floor, Cj. 152, CEP 04542-000, Sao Paulo, Brazil

• MÁS FONDOS, S.A. is a limited liability company established under the laws of Mexico de c.v. sociedad operadora de fondos de inversión montes urales 505, piso 2, col. lomas de chapultepec, delegación miguel hidalgo, cp. 11000, ciudad de méxico

• AZIMUT (DIFC) LTD was established as a limited liability company under Dubai law, having its registered office in Central Parks Towers, Unit 45, Flr. 16, Dubai International Financial Centre, PO Box 506944, Dubai, United Arab Emirates

The Company will also manage a portion of the Sub-fund's portfolio. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Euribor + 4% for NON HEDGED Units • 3 months Euribor + 4% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation

https://maps.google.com/?q=MONTES+URALES+505,+PISO+2,+COL.+LOMAS+DE+CHAPULTEPEC,+DELEGACI%C3%93N+MIGUEL+HIDALGO,%E2%80%8B+CP.+11000,+CIUDAD+DE+M%C3%89XICO&entry=gmail&source=g



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Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. Each Manager receives a fee for the management services on behalf of the Sub-fund. These fees are paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. DISTRIBUTION POLICY: the Sub-fund shall apply an income capitalisation policy. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested

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"AZ Bond – Income Opportunities" factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities issued by governments, supranational institutions or governmental bodies around the world and/or companies around the world. The Sub-fund focuses on high yield securities such as high yield bonds and debt securities of emerging countries. Investments in investment grade rated debt securities issued by governments, supranational institutions or governmental authorities of developed countries and/or companies headquartered in developed countries are made to balance the overall risk profile of the entire portfolio. The relative weighting between these two items may change over time as market conditions change. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests directly or indirectly at least 80% of its net assets in money market instruments and debt securities issued by governments, supranational institutions or governmental bodies worldwide and/or companies from all over the world (including emerging countries). Indirect exposure is obtained by investing in units of UCITS and/or other UCIs investing in debt securities. The Sub-fund may invest up to 50% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund invests directly or indirectly up to 70% of its net assets in debt securities rated sub-investment grade at the time of purchase. The Sub-fund invests directly or indirectly between 20% and 70% of its net assets in money market instruments and debt securities issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies with their head office in emerging countries. The Sub-fund may also invest:

- up to 10% of its net assets in asset-backed securities (ABS) and mortgage-backed securities (MBS); - up to 10% of its net assets in CoCo bonds; - up to 10% of its net assets in Insurance-Linked Securities (ILS). - up to 5% of its net assets in securities that are in difficulty at the time of purchase; - up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified. A debt security rated investment grade at the time of acquisition which subsequently becomes sub-investment grade, or rated sub-investment grade at the time of acquisition which subsequently becomes distressed or in default, will not be sold unless, in the opinion of the Manager, it is in the interest of the Unitholders to do so. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, Bund Future, BTP Future, Short Euro-BTP Future and US10YR Note Future indices. The Sub-fund may also invest in credit default swaps (CDS) up to 30% of its net assets for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund does not invest in securities that are defaulting at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency future contracts, currency futures and currency

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options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency future contracts, currency futures and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type) LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 300 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 2), 3), 4), 6), 10), 11) and 12) of section III, chapter 3, of this Prospectus. In addition to the risk factors set out in the general section of the Prospectus in section III "Risk Factors" of chapter 3, the following specific risk factors are associated with the Sub-fund's investments: - Leverage risks: the Sub-fund may achieve a certain degree of leverage by using derivative financial


- Risks related to ILS as described in Appendix III of the Prospectus. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference currency Type of hedging Hedging against

exchange rate risk A-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (ACC) [hedge] EUR HEDGED Hedging against USD A-AZ FUND (DIS) [hedge] EUR HEDGED Hedging against USD B-AZ FUND (DIS) [hedge] EUR HEDGED Hedging against USD B-AZ FUND (ACC) [hedge] EUR HEDGED Hedging against USD A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period48.


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For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND (DIS) [hedge], B-AZ FUND (DIS) [hedge] and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), B-AZ FUND (ACC), A-AZ FUND USD (ACC) [hedge] and A-AZ FUND USD (DIS) [hedge]. The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

o EUR 1,500 for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) and B-AZ FUND (ACC), A-AZ FUND (ACC) [hedge], A-AZ FUND (DIS) [hedge], B-AZ FUND (DIS) [hedge] and B-AZ FUND (ACC) [hedge]

o USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND USD (DIS), A-AZ FUND (ACC) [hedge], A-AZ FUND (DIS) [hedge], A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:



Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For Units of class B AZ FUND (ACC), B-AZ FUND (DIS), B-AZ FUND (DIS) [hedge] and B-AZ FUND (ACC) [hedge] a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus.


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Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. MANAGERS: under the relevant agreements, with reference to specific geographical and territorial experiences, the following are appointed as Managers of this Sub-fund:

• AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121, Italy;

• AZ INVESTMENT MANAGEMENT SINGAPORE Ltd is a Limited Company established under Singapore law. Its registered office is at 9 Temasek Boulevard, Suntec Tower 2, #44-02, Singapore 038989

• AZ SWISS & PARTNERS S.A. is a corporation (Société Anonyme) established under Swiss law with registered office at Via Carlo Frasca, 5 – 6900 Lugano, Switzerland;

• AZ QUEST INVESTIMENTOS LTDA was established as a limited liability company under Brazilian law, having its registered office at Rua Leopoldo Couto de Magalhaes Junior, no 758, 15th floor, Cj. 152, CEP 04542-000, Sao Paulo, Brazil;

• CGM-COMPAGNIE DE GESTION PRIVÉE MONÉGASQUE is a corporation (Société Anonyme) established under the laws of the Principality of Monaco with registered office at 8, Boulevard des Moulins-Escalier des Fleurs 98000-Monaco.

• MÁS FONDOS, S.A. is a limited liability company established under the laws of Mexico de c.v. sociedad operadora de fondos de inversión montes urales 505, piso 2, col. lomas de chapultepec, delegación miguel hidalgo, cp. 11000, ciudad de méxico

• AZIMUT (DIFC) LTD was established as a limited liability company under Dubai law, having its registered office in Central Parks Towers, Unit 45, Flr. 16, Dubai International Financial Centre, PO Box 506944, Dubai, United Arab Emirates

The Company will also manage a portion of the Sub-fund's portfolio. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:




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• 3 months Libor USD + 2.5% for NON HEDGED Units • 3 months Libor USD + 2.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. Each Manager receives a fee for the management services on behalf of the Sub-fund. These fees are paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. DISTRIBUTION POLICY: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND (DIS) [hedge], B-AZ FUND (DIS) [hedge], A-AZ FUND USD (DIS) Units and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (ACC) [hedge], B-AZ FUND (ACC) [hedge] and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

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"AZ Equity - Global ESG" factsheet General Information

OBJECTIVE AND INVESTMENT POLICY: The investment objective of the Sub-fund is to achieve medium to long-term capital growth by applying environmental, social and governance criteria (ESG). The Sub-fund invests at least 80% of its net assets in units of UCITS and/or other UCIs that meet ESG criteria, such as sustainable, socially responsible and/or ethical investment criteria. The target UCITS and/or other UCIs invest at least 70% of their net assets in shares and other equity-related securities issued by companies worldwide, including emerging countries. In circumstances where market conditions do not allow sufficient investments with an attractive return potential and risk profile to be identified, the Sub-fund may invest up to 20% of its net assets in money market instruments and cash. The Sub-fund does not invest directly in equities or debt securities. The Sub-fund uses derivative financial instruments for investment purposes in order to implement its investment policy and may have long or short exposures (depending on market conditions) to the derivative financial instruments listed below. The derivative financial instruments used mainly consist of futures, options and financial contracts for difference (CFD) on diversified indices on shares and other equity-related securities, including, among others, the E-mini S&P500 Future, Eurostoxx 50 Future and Nikkei 225 Future indices. Assets underlying derivative financial instruments generally do not apply any ESG criteria. The base currency of the Sub-fund is the Euro (EUR) and the Sub-fund does not intend to hedge the currency risk against other currencies of the investments in its portfolio. The Sub-fund may use currency futures, currency swaps and currency options for investment purposes in order to dynamically adjust the overall currency exposure of the portfolio according to market opportunities. The Sub-fund aims at maintaining a leverage lower than 150%, calculated on the total of all derivative instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 6) and 25) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference currency Type of hedging Hedging against

exchange rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways.

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The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period49. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS) and B-AZ FUND (DIS) • USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) (except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due.


Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units: - maximum of 3% of the par value of the plan for all subscriptions via multi-annual investment plans;



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- maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. For B-AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.


Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means

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the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

Distribution Policy: the Sub-fund shall distribute revenue to Holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of Holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.

Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

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"AZ Equity - Escalator" factsheet General Information

OBJECTIVE AND INVESTMENT POLICY: The investment objective of the Sub-fund is to achieve medium to long-term capital growth by gradually increasing the exposure to shares and other equity-related securities issued by companies worldwide (including emerging markets), over a 5-year period from the launch of the Sub-fund in order to then implement a dynamic portfolio management.

The Sub-fund shall be launched with an initial exposure to shares and other equity-related securities of 0% which shall be then gradually increased over a period of 5 years according to an allocation plan actively managed by the Company to achieve exposure to shares and other equity-related securities up to 100% of its net assets. After the 5-year period, the Sub-fund's portfolio shall be managed dynamically with an exposure to shares and other equity-related securities of at least 75% of its net assets.

Throughout its lifetime, the Sub-fund shall invest at least 50% of its net assets in units of UCITS, ETFs and/or other UCIs (including units of UCITS and/or other UCIs belonging to the Azimut group). During the first 3 years, the Sub-fund shall invest:

- up to 65% of its net assets in units of UCITS, ETFs and/or other UCIs that invest in shares and other equity-related securities with a limit of 10% of the net assets in units of UCITS, ETFs and/or other UCIs that invest in shares and other equity-related securities in emerging markets;

- up to 100% of its net assets in units of UCITS, ETFs and/or other UCIs that invest in debt securities with a limit of 10% of the net assets in units of UCITS, ETFs or other UCIs that invest in debt securities in emerging markets;

- up to 10% of its net assets in units of UCITS, ETFs and/or other UCIs that invest in asset-backed securities (ABS) and mortgage-backed securities (MBS);

- up to 10% of its net assets in shares and other similar securities; - up to 50% of its net assets in securities issued by governments, governmental authorities and/or

supranational issuers in the euro zone; - up to 30% of its net assets in securities issued by governments, governmental authorities and/or

supranational issuers of developed countries outside the euro zone; - up to 30% of its net assets in investment grade debt securities issued by companies having their

registered office in a developed country; - up to 20% of its net assets in non-investment grade debt securities issued by companies having their

registered office in a developed country; - up to 20% of its net assets in money market instruments; and - up to 20% of its net assets in cash in circumstances where market conditions do not allow sufficient

investments with an attractive return potential and risk profile to be identified. After a period of 3 years and until the end of the 5th year, the Sub-fund shall invest:

- at least 45% of its net assets in units of UCITS, ETFs and/or other UCIs that invest in shares and other equity-related securities;

- up to 10% of its net assets in units of UCITS, ETFs and/or other UCIs that invest in shares and other equity-related securities in emerging markets;





supranational issuers of developed countries outside the euro zone;

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- up to 15% of its net assets in investment grade debt securities issued by companies having their registered office in a developed country;

- up to 10% of its net assets in non-investment grade debt securities issued by companies having their registered office in a developed country;

- up to 10% of its net assets in money market instruments; and - up to 20% of its net assets in cash in circumstances where market conditions do not allow sufficient

investments with an attractive return potential and risk profile to be identified. After the 5th year, the Sub-fund's portfolio shall be managed dynamically with an exposure to shares and other equity-related securities of at least 75% of its net assets, within the following limits:

- at least 75% of its net assets in units of UCITS, ETFs and/or other UCIs that invest in shares and other equity-related securities;

- up to 10% of its net assets in units of UCITS, ETFs and/or other UCIs that invest in shares and other equity-related securities in emerging markets;





supranational issuers of developed countries outside the euro zone; - up to 15% of its net assets in investment grade debt securities issued by companies having their

registered office in a developed country; - up to 10% of its net assets in non-investment grade debt securities issued by companies having their

registered office in a developed country; - up to 10% of its net assets in money market instruments; and - up to 20% of its net assets in cash in circumstances where market conditions do not allow sufficient

investments with an attractive return potential and risk profile to be identified. The Sub-fund shall not directly invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds, or defaulted securities, or those experiencing any difficulty at the time of purchase. The net exposure to shares and other equity-related securities may not exceed 100% of the net assets.

The Sub-fund uses derivative financial instruments for investment purposes in order to implement its investment policy and may have long or short exposures (depending on market conditions) to the derivative financial instruments listed below. The derivative financial instruments mainly used consist of futures, options and financial contracts for difference (CFD) on diversified indices on shares and other equity-related securities, including, among others, the E-mini S&P500 Future, Eurostoxx 50 Future and Nikkei 225 Future indices, as well as futures on interest rate and debt securities, including, among others, the Bund Future, BTP Future, Short Euro-BTP Future and US10YR Note Future indices. The base currency of the Sub-fund is the Euro (EUR) and the Sub-fund does not intend to hedge the currency risk against other currencies of the investments in its portfolio.

The Sub-fund tends to maintain a leverage lower than 100% calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraph 6) of section III, chapter 3, of this Prospectus.

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Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference currency Type of hedging Hedging against

exchange rate risk A-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period50. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Minimum initial subscription amount: (50) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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the minimum initial subscription amount is:

o EUR 1,500 for Units of A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC) and B-AZ FUND (DIS)

o USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND USD (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) Units:



Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. Any additional variable management fee amounts to 0.010% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall distribute revenue to holders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ

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FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested.

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"AZ Alternative - Momentum" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities and equity derivative financial instruments using a "momentum" approach. The "momentum" approach consists of taking a long exposure if past performance has been positive, or a short exposure if past performance has been negative. The Sub-fund may take long or short positions depending on momentum, measured over several time horizons. The Sub-fund uses only a portion of its assets to achieve the desired exposure to the above-mentioned assets given the structure of derivative financial instruments. As a result, the remaining assets of the Sub-fund are invested in a portfolio of debt securities that provide an additional return over the long term. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests up to 100% of its net assets in shares and other equity-related securities issued by companies worldwide. For the portion of the portfolio that is invested in debt securities, the Sub-fund may invest:



supranational institutions or governmental authorities of emerging countries; The Sub-fund may also invest:

- up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 15% of its net assets of ETCs (whose underlying assets are eligible within the meaning of Article

41(1) of the Law and Article 8 of the Grand-Ducal Regulation of 8 February 2008) and/or ETFs on diversified commodity indices;



- futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities and/or equity indices, including, among others, E-mini S&P500 Future, NASDAQ 100 E-Mini Futures, E-mini Russell 2000 Index Futures, Eurostoxx 50 Future, FTSE/MIB Index Future, German DAX Stock Index Future and MSCI Emerging Markets Index Futures;


The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities.

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In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage effect lower than 300 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A - AZ FUND (ACC) EUR NON HEDGED No B- AZ FUND (ACC) EUR NON HEDGED No A- AZ FUND USD (ACC) USD NON HEDGED No Unit Classes: the Sub-fund will issue A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. These different Unit classes are defined in Chapter 8 and Appendix II of this Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 10,000 for the Units of classes A-AZ FUND (ACC) and B-AZ FUND (ACC) • USD 10,000 for the Units of classes A-AZ FUND USD (ACC)

(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). Frequency of net asset value calculation: the NAV will be calculated on a daily basis. SUBSCRIPTIONS AND REDEMPTIONS: A subscription fee is payable for Units of class A-AZ FUND (ACC) and A-AZ FUND USD (ACC):

• maximum of 3% of the par value of the investment plan for all subscriptions via multi-annual investment plans;

• maximum of 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus).

The multi-annual investment plan described in Chapter 9 of this Prospectus is not available for investors in Luxembourg.

For class B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion : the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is:



Manager: according to an agreement entered into for an indefinite period, the company AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Manager of the Sub-fund. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

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Management fee and additional variable management fee: A management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall apply an income capitalisation policy. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange.

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“AZ Bond - Target 2021” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve capital growth until the target maturity date of 31 December 2021. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio consisting mainly of sub-investment grade rated debt securities issued by companies around the world. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund will be managed with a target maturity date of 31 December 2021. The portfolio will be composed of fixed and/or floating rate debt securities, and has an effective duration that is close to the target maturity date. In order to actively manage the Sub-fund in the interest of investors, the effective duration of the portfolio may deviate by 6 months from the target maturity without substantially changing the risk profile of the Sub-fund. The Sub-fund invests between 60% and 100% of its net assets in debt securities and money market instruments issued by companies that have their head office in developed countries. The Sub-fund may invest up to 40% of its net assets in debt securities issued by governments, supranational institutions or governmental bodies. The Sub-fund does not invest more than 30% of its net assets in debt securities of which the issuers are located in emerging countries. The majority of the debt securities in which the Sub-fund invests are rated sub-investment grade. The Sub-fund may invest up to 20% of its net assets in debt securities of which the issuers do not have a rating and up to 5% in securities in default or in difficulty at the time of purchase. The Sub-fund may also invest:

- up to 20% of its net assets in contingent convertible bonds (CoCo bonds), including up to 10% in CoCo bonds of which the issuers are rated sub-investment grade including, among others, "additional tier 1", "restricted Tier 1" and "Tier 2" type CoCo bonds;

- up to 15% of its net assets in asset-backed securities (ABS) and mortgage-backed securities (MBS); - up to 15% of its net assets in convertible bonds (other than CoCo bonds); - up to 20% of its net assets in money market instruments; - up to 10% of its net assets in Units of UCITS and/or other UCIs.

The Sub-fund may invest up to 20% of its net assets in cash and money market instruments up to 3 months before the target maturity date. Cash and money market instruments may represent up to 100% of the Sub-fund’s net assets during the period from 3 months before and up to 3 months after the target maturity date (31 December 2021). The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, Bund Future, Euro BOBL Future, Euro Shatz Future, BTP Future and US10YR Note Future. The Sub-fund may also use credit default swaps (CDS) to manage the overall credit risk of the portfolio, and may invest up to 30% of its net assets in CDS for investment purposes and up to 100% of its net assets for risk hedging purposes.

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After the target maturity date of 31 December 2021, the Sub-fund may either be liquidated, if the Company considers that this option is in the best interests of investors, or continue to be managed within the investment limits set out above without reference to a future target date or any life cycle constraints. The Unitholders of the Sub-fund will receive a notice informing them of the decision either to continue the management or to liquidate the Sub-fund. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. The net exposure to currencies other than the Sub-fund’s base currency is limited to 20%.

In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 11) and 12) of section III, chapter 3, of this Prospectus. In addition to the risk factors set out in the general section of the Prospectus in section III "Risk Factors" of chapter 3, the following specific risk factor is associated with the Sub-fund's investments: Risks related to convertible bonds Investments in convertible bonds have a certain sensitivity to fluctuations in the prices of the underlying shares (the "share component" of the convertible bond) while providing some form of protection for a portion of the capital (the "bond floor" of the convertible bond). The greater the share component, the poorer the capital protection. As a consequence, a convertible bond experiencing a significant increase in its market value following the increase in the price of the underlying share will have a risk profile closer to that of a share. On the other hand, a convertible bond experiencing a decline in its market value to the level of its bond floor following the fall in the price of the underlying share will have a risk profile close to that of a standard bond. The convertible bond, like other types of bonds, is subject to the risk that the issuer may not meet its obligations in terms of interest payments and/or principal repayment at maturity (credit risk). The market perception of the increase in the likelihood of the risk occurring for a given issuer results in a sometimes significant decrease in the market value of the bond and thus in the protection offered by the bond content of the convertible bond. Bonds are further exposed to the risk of a drop in their market value following an increase in the reference interest rates (interest rate risk). Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi.

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This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period51. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit Classes: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of this Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 10,000 for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS)


(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus).

Frequency of net asset value calculation: the NAV will be calculated on a daily basis.

Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS):



357


• maximum of 2 % of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus).

The multi-annual investment plan described in Chapter 9 of this Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion : the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus Manager: AZ SWISS & PARTNERS SA has been appointed as Manager for the Sub-fund, based on an agreement for an indefinite period but subject to termination by either party with six months’ prior notice. AZ SWISS & PARTNERS SA is a Joint Stock Company (Société Anonyme) established under Swiss law. with registered office at Via Carlo Frasca, 5 – 6900 Lugano, Switzerland. Management fee and additional variable management fee: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



358

“Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: The Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

359

“AZ Bond - ABS” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide a regular income and capital growth in the medium/long term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities with a focus on asset-backed securities (ABS). INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests primarily in ABS that are primarily created in Europe and issued by entities incorporated for the purpose of issuing ABS. The Sub-fund invests at least 50% of its net assets in senior ABS listed or traded on the Luxembourg Stock Exchange, the Irish Stock Exchange or other recognised markets and/or in ABS backed by residential mortgages. The remaining portion of the Sub-fund’s portfolio may be invested in ABS, loan-backed bonds (collateralised loan obligation or CLO) and debt-backed bonds (collateralised debt obligation or CDO) backed by other types of assets, such as commercial mortgages, mortgage loans, mortgage bonds (corporate bonds, mainly with a variable interest rate), leveraged corporate loans, consumer loans, student loans, credit card debts, small and medium-sized business loans, non-productive loans, non-compliant loans, trade receivables, wholesale trade assets and loans, automotive loans and other ABS. ABS may have embedded derivatives such as credit default swaps (CDS) and/or swaps on interest rates, among others. The Sub-fund may invest up to 20% of its net assets in junior ABS and up to 50% of its net assets in mezzanine ABS. The Sub-fund may invest up to 30% of its net assets in credit-linked notes with underlying ABS exposure. The Sub-fund invests no more than 25% of its net assets in debt securities rated sub-investment grade , including up to 5% in securities in default or in difficulty. The Sub-fund may also invest:

- up to 20% of its net assets in money market instruments; - up to 10% of its net assets in units of UCITS and/or other UCIs; - up to 5% of its net assets in ABS issued by companies headquartered in emerging countries.

The Sub-fund uses the following main derivative financial instruments for risk hedging purposes: futures, options and financial contracts for differences (CFDs) on interest rates and debt securities including, among others, Bund Future and BTP Future. The Sub-fund may also use CDS to manage the overall credit risk of the portfolio, and may invest up to 10% of its net assets in ABS CDS for investment purposes and/or for risk hedging purposes. The Sub-fund does not invest in contingent convertible bonds (CoCo bonds). CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund seeks to actively manage currency exposure by using currency future contracts. The net exposure to currencies other than the Sub-fund’s base currency is limited to 20%. The Sub-fund may use currency future contracts, currency swaps and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures, currency future contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type).

360

LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage effect lower than 250 %, calculated on the total of all derivative financial instruments' notional amounts. BASE CURRENCY OF THE SUB-FUND: EUR REFERENCE CURRENCY: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



Unit Classes: the Sub-fund will issue class A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC) Units. The various Unit classes are described in chapter 8 and in Appendix II of this Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


(except as required in chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus).

Frequency of net asset value calculation: the N.A.V. shall be calculated weekly, every Wednesday that is a full/complete bank business day and is also a day on which national stock exchanges are open in Luxembourg (Valuation Day), or the next business day. The Administrative Agent will calculate the NAV referring to the data of the previous business day (Valuation Date).

Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC) and A-AZ FUND USD (ACC): • maximum of 3% of the par value of the investment plan for all subscriptions via multi-annual investment plans; • maximum of 2 % of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus). The multi-annual investment plan described in Chapter 9 of this Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus Manager: based on an agreement, CGM Italia SGR S.p.A. has been appointed Manager of the Sub-fund. CGM Italia SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law. Its registered office is located at Via Santa Maria Segreta 7/9 Milan (Italy).

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Management fee and additional variable management fee: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall apply an income capitalisation policy. Listing: This Sub-fund's Units shall not be listed on the Luxembourg stock exchange.

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Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter

363

"AZ Equity - Best Value" Sub-fund factsheet General Information

INVESTMENT OBJECTIVE: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies worldwide, using the bottom-up selection process for companies that, in the opinion of the Manager, are undervalued. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets in shares and other equity-related securities issued by companies worldwide. The Sub-fund can invest up to 40% of its net assets in shares and other similar securities issued by companies with their head office or which carry out a predominant part of their economic activities in emerging countries.




The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund will not invest in corporate debt securities, asset-backed securities (ABS) and mortgage-backed securities (MBS), contingent convertible bonds (CoCo bonds) or securities that are in default or in difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 150 %, calculated on the total of all derivative financial instruments' notional amounts. BASE CURRENCY OF THE SUB-FUND: EUR REFERENCE CURRENCY: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No

Unit Classes: the Sub-fund will issue Units type A-AZ FUND (ACC); B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of this Prospectus.

364



• USD 5,000 for Units of class A-AZ FUND USD (ACC) (except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). Frequency of net asset value calculation: the NAV will be calculated on a daily basis. Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC) and A-AZ FUND USD (ACC):




For B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount will be EUR 500 (or USD 500 depending on the Unit class subscribed) Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: according to an agreement entered into for an indefinite period, the company Cobas Asset Management has been appointed as Manager of this Sub-fund. Its registered office is at calle Jose Abascal 45, 3 piso, 28003 – Madrid, Spain. Management fee and additional variable management fee: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


365

“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall apply an income capitalisation policy. Listing: this Sub-fund's Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter

366

"AZ Equity – Brazil Trend" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies that have their head office or conduct a predominant part of their economic activities in Brazil, focusing on those companies that, in the opinion of the Manager, are undervalued. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets in shares and other equity-related securities issued by companies that have their head office in Brazil or that carry out a predominant part of their economic activities in Brazil. The Sub-fund may also invest:

- up to 20% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of Brazil;


The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and equity-related securities and/or equity indices, including, among others, Ibovespa Futures Contract. The Sub-fund will not invest in debt securities, asset-backed securities (ABS) and mortgage-backed securities (MBS), contingent convertible bonds (CoCo bonds) or securities that are in default or in difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 150%, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: USD REFERENCE CURRENCY: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A- PLATFORMS (EURO) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No A- PLATFORMS (USD) USD NON HEDGED No

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Unit Classes: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-PLATFORMS (EURO), A-AZ FUND USD (ACC), A-PLATFORMS (USD), B-AZ FUND (ACC). The various Unit classes are described in chapter 8 and in Appendix II of this Prospectus Minimum initial subscription amount: the minimum initial subscription amount is:

o EUR 1,500 for Units of class A-AZ FUND (ACC), A-PLATFORMS (EURO) and B-AZ FUND (ACC)

o USD 1,500 for Units of class A-AZ FUND USD (ACC) and A-PLATFORMS (USD)

(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-PLATFORMS (EURO) A-AZ FUND USD (ACC) and A-PLATFORMS (USD) Units:



Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. MANAGER: AZ QUEST INVESTIMENTOS LTDA has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZ QUEST INVESTIMENTOS LTDA was established as a limited liability company under Brazilian law, having its registered office in São Paulo, Brazil, Rua Leopoldo Couto de Magalhaes Junior, no 758 – cj. 152 Itaim Bibi – CEP 04542-000

Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if

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any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



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"AZ Alternative - Flex" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a balanced portfolio through a flexible approach as well as by dynamically adjusting its net exposure to equities and debt securities. The Sub-fund actively manages the equity component of the portfolio on the basis that equity market returns are self-correlated over the short term (i.e. positive returns are likely to be followed by more positive returns, and negative returns are likely to be followed by more negative returns) while over longer periods, market returns revert to the average ("mean reverting") (i.e. extended periods of positive performance are generally followed by significant corrections, while extended periods of corrections are generally followed by significant rebounds). The Sub-fund follows market trends over the short term through a "momentum" approach (through long exposure if past performance has been positive, or short if past performance has been negative), while when the markets are positive, in the opinion of the Manager, likely to revert to the mean, a contrarian approach will be taken (through a short exposure if past performance has been positive, or long if past performance has been negative). The remaining portion of the portfolio is invested in debt securities with an attractive yield to maturity in order to enhance the Sub-fund’s return. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests up to 100% of its net assets in shares and other equity-related securities issued by companies worldwide. The portion of the Sub-fund’s portfolio invested in shares and other equity-related securities will be managed dynamically by a tactical approach over a short to medium term horizon as described above. The remaining portion of the Sub-fund’s portfolio will be invested as follows:


- up to 100% of its net assets in debt securities issued by companies having their head office in developed countries;

- up to 20% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of emerging countries;

- up to 35% of its net assets in units of UCITS and/or of other UCIs; - up to 10% of its net assets of ETCs (whose underlying assets are eligible within the meaning of Article

41(1) of the Law and Article 8 of the Grand-Ducal Regulation of 8 February 2008) and/or ETFs on diversified commodity indices;



- futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities and/or equity indices, including, among others, E-mini S&P500 Future, NASDAQ 100 E-Mini Futures, Eurostoxx 50 Future, FTSE/MIB Index Future, German DAX Stock Index Future, Nikkei 225 Future, Hang Seng Index Future and MSCI Emerging Markets Index Futures ;


The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase.

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The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs) or in contingent convertible bonds (CoCo bonds). CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts, currency futures and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 300 %, calculated on the total of all derivative financial instruments' notional amounts. BASE CURRENCY OF THE SUB-FUND: EUR REFERENCE CURRENCY: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of this Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:


(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). Frequency of net asset value calculation: the NAV will be calculated on a daily basis. Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC) and A-AZ FUND USD (ACC):


• 2% of the amount invested, as indicated in Appendix II of this Prospectus, for lump-sum subscriptions (please see chapter 9 of this Prospectus).


For B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion : the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is:


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Manager: according to an agreement entered into for an indefinite period, the company AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Manager of the Sub-fund. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

Management fee and additional variable management fee: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate.

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The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall apply an income capitalisation policy. Listing: this Sub-fund's Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter. It should be noted that, to the extent to which a portion of net assets of a given Sub-fund is invested in shares or units of other undertakings for collective investment established under Luxembourg law subject to registration tax, the Sub-fund shall be exempt from paying registration tax on the part thus invested

373

"AZ Bond – Mid Yield" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide a regular income and capital growth in the short/medium term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities issued by companies around the world. The Sub-fund invests primarily in fixed and/or floating rate debt securities with the lowest investment grade and/or the highest sub-investment grade ratings. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 40% and 100% of its net assets in debt securities issued by companies that have their head office in developed countries. The Sub-fund may invest up to 50% of its net assets in debt securities issued by governments, supranational institutions or governmental bodies of developed countries. The Sub-fund may invest up to 50% of its net assets in debt securities of which the issuers are located in emerging countries. The Sub-fund may invest up to 75% of its net assets in debt securities rated sub-investment grade at the time of acquisition, while the Sub-fund may not invest more than 50% of its net assets in subordinated bonds, including up to 20% in contingent convertible bonds (CoCo bonds). The Sub-fund may also invest:

- up to 20% of its net assets in money market instruments; - up to 10% of its net assets in Units of UCITS and/or other UCIs.

The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates and debt securities including, among others, Bund Future, Euro BOBL Future, Euro Shatz Future, BTP Future and US10YR Note Future. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts.

Base currency of the Sub-fund: EUR. REFERENCE CURRENCY: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk

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A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Unit Classes: the Sub-fund will issue Units type A-AZ FUND (ACC); B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 10,000 for A-AZ FUND (ACC) and B-AZ FUND (ACC) Units


(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). Frequency of net asset value calculation: the NAV will be calculated on a daily basis.

Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC) and A-AZ FUND USD (ACC):




For B AZ FUND (ACC) Units a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: The methods used to convert the Units of a Sub-fund into those of another one are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is:

• EUR 500 for A-AZ FUND (ACC) and B-AZ FUND (ACC) Units. • USD 500 for A-AZ FUND USD (ACC) Units


Investment Advisor: based on an agreement entered into with AZIMUT CAPITAL MANAGEMENT SGR S.p.A., this company has been appointed as Investment Advisor for the Sub-fund. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if

375

any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall apply an income capitalisation policy. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“AZ Bond - Sustainable Hybrid” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide a regular income and capital growth in the short/medium term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities issued by companies around the world that meet ESG criteria. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests primarily in hybrid/subordinated and/or perpetual bonds, issued by both financial and non-financial institutions. At least 70% of the Sub-fund’s net assets are invested in debt securities whose issuers meet ESG ("Environmental, Social & Governance") criteria:

- the environmental criterion takes into account how a company achieves its performance while ensuring environmental protection;

- the social criterion takes into account how relationships between employees, suppliers, customers and the communities in which they operate are managed;

- the governance criterion takes into account the company's management, executive compensation, audits, internal controls and shareholders' rights.

The Sub-fund invests between 75% and 100% of its net assets in debt securities issued by companies that have their head office in developed countries. The Sub-fund may invest up to 25% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of developed countries and/or in debt securities of issuers located in emerging countries. At least 60% of the Sub-fund’s net assets are invested in debt securities rated BB+ or better at the time of purchase. The Sub-fund may invest up to 20% of its net assets in contingent convertible bonds (Coco bonds). The Sub-fund may also invest:

- up to 20% of its net assets in money market instruments; - up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 10% of its net assets in cash.

The Sub-fund invests no more than 5% of its net assets in shares and other equity-related securities other than those resulting from the conversion of debt securities. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates and debt securities including, among others, Bund Future, Euro BOBL Future, BTP Future, Short term Euro-BTP futures and US10YR Note Future. The Sub-fund may also use credit default swaps (CDS) to manage the overall credit risk of the portfolio, and may invest up to 20% of its net assets in CDS for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty at the time of purchase. ESG POLICY: The ESG criteria are taken into account at the time of acquisition of the shares, and consist of a list of ESG topics analysed according to a sustainable development approach carried out by the Investment

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Advisor. The ESG criteria are binding and apply on a continuous basis to corporate bonds (including bonds issued by financial and non-financial institutions) and bonds issued by governments. For corporate bonds, the ESG analysis is based on exclusion criteria for issuers that have a certain level of exposure to, or are related to, certain sectors including, among others, nuclear power, chlorine-based chemicals, agrochemicals, genetic engineering, airlines, oil and mining, coal mining and hydro fracturing. The Investment Advisor also intends to exclude issuers of securities that may have been exposed to issues related to human rights, pornography, gambling, armaments or tobacco. With regard to government bonds, the Investment Advisor intends to exclude countries exposed to the death penalty, human rights, peace and security issues. The governance of issuing companies is also analysed through their strategy (development of the business model and their target markets and products) and management (corporate governance, management systems and communication/transparency) and the Investment Advisor considers corruption as an exclusion criterion. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 12) and 25) of section III, chapter 3, of this Prospectus. BASE CURRENCY OF THE SUB-FUND: EUR REFERENCE CURRENCY: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR

Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s

378

discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period52. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit Classes: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of this Prospectus.


• EUR 1,500 for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC) and B-AZ FUND (DIS)


(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated on a daily basis.




379



The multi-annual investment plan described in Chapter 9 of this Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus.

Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion : the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: based on an agreement the company Vontobel Asset Management AG. has been appointed Investment Advisor for the Sub-fund. Vontobel Asset Management AG is a Limited Company established under Swiss law. Its registered office is at Gotthardstrasse 43, 8022 Zurich, Switzerland. Management fee and additional variable management fee: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



380

“Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: The Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS) Units and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following reference periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: this Sub-fund's Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

381

“AZ Allocation – Global Aggressive” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of shares and other equity-related securities and debt securities from around the world. The Sub-fund actively manages the allocation between shares and other equity-related securities and debt securities, based on the expected risk and return from these two asset classes. Shares and other equity-related securities are the main components of the Sub-fund’s portfolio. The remaining portion of the portfolio will be invested in debt securities in order to balance the risk profile of the Sub-fund. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 60% and 100% of its net assets in shares and other equity-related securities issued by companies worldwide, including up to 30% of its net assets in emerging countries. The Sub-fund invests up to 40% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies of developed countries and/or companies with their head office in developed countries. The Sub-fund may also invest:

- up to 10% of its net assets in debt securities with a sub-investment grade rating; - up to 10% of its net assets in CoCo bonds; - up to 10% of its net assets in debt securities and money market instruments issued by governments,




• futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices and other similar securities, including, among others, E-mini S&P500 Future, Eurostoxx 50 Future and Nikkei 225 Future;

• futures on debt securities including, among others, Bund Future, BTP Future, and US10YR Note Future.

The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type) LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 150 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR

382



rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period53. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS) and B-AZ FUND (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Initial subscription and minimum initial subscription amount: the Company Board of Directors reserves the right to launch the Sub-fund at a later date. Initial price is:



383

• EUR 5 for A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC) and B-AZ FUND (DIS) Units • USD 5 for Units of class A-AZ FUND USD (ACC) The minimum initial subscription amount is: • EUR 1.500 for A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC) and B-AZ FUND (DIS) Units • USD 1.500 for Units of class A-AZ FUND USD (ACC) (except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due.


Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS) and A-AZ FUND USD (ACC):




For B AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed).

Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Manager for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration.

384

The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Euribor + 2.5% for NON HEDGED Units • 3 months Euribor + 2.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.

Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter

385

“AZ Allocation – Risk Parity Factors” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of shares and other equity-related securities and debt securities from around the world. Investments in shares and other equity-related securities are actively managed by balancing the risk contribution among each investment factor, as described below:

- Momentum: refers to assets with positive risk-adjusted returns over an extended period; - Carry: targets assets with higher than average growth potential, including, among other things, high sales and earnings per share growth; - Value: refers to assets that are undervalued in relation to their accounting, economic and financial fundamentals; - Size: refers to assets with a high market capitalisation; - Quality: refers to assets with strong accounting, economic and financial data; - Low Risk: refers to assets with low volatility or beta.

Equity exposure is actively managed and depends on the overall volatility of investment factors. The remaining portion of the portfolio is invested in debt securities with an attractive yield to maturity in order to enhance the Sub-fund’s return. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 20% of its net assets in shares and other equity-related securities issued by companies worldwide. The Sub-fund may also invest:


- up to 40% of its net assets in debt securities rated sub-investment grade; - up to 10% of its net assets in money market instruments and debt securities issued by governments,


- up to 10% of its net assets in convertible bonds; - up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 30% of its net assets in cash when market conditions do not allow sufficient investments with an


• futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices and other similar securities, including, among others, E-mini S&P500 Future, Eurostoxx 50 Future and FTSE 100 Future;

• futures, options and CFDs on debt securities and ETFs investing in debt securities, including, among others, Bund Future and BTP Future and US10YR Note Future.

The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase.

386

CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 400 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period54. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi.



387

This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS) and B-AZ FUND (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Initial subscription and minimum initial subscription amount: the Company Board of Directors reserves the right to launch the Sub-fund at a later date. Initial price is: • EUR 5 for A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC) and B-AZ FUND (DIS) Units • USD 5 for Units of class A-AZ FUND USD (ACC) The minimum initial subscription amount is: • EUR 1.500 for A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC) and B-AZ FUND (DIS) Units • USD 1.500 for Units of class A-AZ FUND USD (ACC) (except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due.


Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND (DIS) and A-AZ FUND USD (ACC), Units:




For B AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period.

388

During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Euribor + 2% for NON HEDGED Units • 3 months Euribor + 2% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS) units and shall reinvest revenue of holders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


389

"AZ Bond – Global Macro Bond" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively investing in a diversified portfolio of fixed and/or variable income debt securities. The Sub-fund uses a top-down investment approach that focuses on macro trends in rates, spreads and liquidity of the various segments of the credit market, and combines long and/or short strategic and tactical positions, while seeking to maximise returns. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 50% and 100% of its net assets in debt securities issued by governments, supranational institutions or governmental bodies of OECD member countries and/or companies headquartered in OECD member countries. The Sub-fund invests up to 50% of its net assets in debt securities issued by governments, supranational institutions or governmental bodies of OECD member countries and/or companies headquartered in OECD non-member countries, including emerging countries. The duration of the Sub-fund is between -5 and +10 years. The Sub-fund may invest up to 75% of its net assets in debt securities rated sub-investment grade at the time of their acquisition. Investments in convertible, hybrid and subordinated bonds shall not exceed 60% of the net assets of the Sub-fund, including up to 20% of its net assets in contingent convertible bonds (CoCo bonds) including, among others, "additional tier 1", "restricted Tier 1" and "Tier 2" type CoCo bonds. The Sub-fund may also invest:

- up to 15% of its net assets in asset-backed securities (ABS) and mortgage-backed securities (MBS); - up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 10% of its net assets in securities that are in default or in difficulty at the time of purchase; - up to 20% of its net assets in money market instruments and/or cash when market conditions do not

allow sufficient investments with an attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, Bund Future, Euro BUXL 30Y Future, Euro BOBL Future, Euro Schatz Future, BTP Future, Short term Euro-BTP futures, Ultra Long Term U.S. Treasury Bond Future, US10YR Note Future and 2-Year US Treasury Note Futures. The Sub-fund may also invest in credit default swaps (CDS) up to 30% of its net assets for investment purposes and up to 100% of its net assets for risk hedging purposes. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts, currency futures and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 350 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR

390



rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period55. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.



391

Initial subscription and minimum initial subscription amount: the Company Board of Directors reserves the right to launch the Sub-fund at a later date. Initial price is: • EUR 5 for A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC) and B-AZ FUND (DIS) Units • USD 5 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

The minimum initial subscription amount is: • EUR 10,000 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS) and B-AZ

FUND (DIS), • USD 10,000 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

(except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus).


Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS):




For B AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Manager: AZ SWISS & PARTNERS SA has been appointed as Manager for the Sub-fund, based on an agreement for an indefinite period but subject to termination by either party with six months’ prior notice. AZ SWISS & PARTNERS SA is a Joint Stock Company (Société Anonyme) established under Swiss law with registered office at Via Carlo Frasca, 5 – 6900 Lugano, Switzerland. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period.

392

If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Euribor + 2% for NON HEDGED Units • 3 months Euribor + 2% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) units and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


393

"AZ Bond – US Dollar Aggregate" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide an income and capital growth in the short/medium term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of fixed and/or variable income debt securities issued by US government, supranational institutions or governmental authorities and/or companies that have their registered office and/or conduct a significant proportion of their business activities in the United States. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 60% and 100% of its net assets in debt securities rated investment grade at the time of acquisition, issued by the government, supranational institutions or governmental authorities of the United States and/or companies that have their head office and/or conduct a predominant part of their economic activities in the United States. The Sub-fund invests at least 60% of its net assets in debt securities denominated in US dollars. The Sub-fund invests up to 40% of its net assets in debt securities rated sub-investment grade at the time of purchase. The Sub-fund may invest up to 40% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of countries other than the United States and/or companies with their head office outside the United States. Investments in emerging countries will not exceed 25% of the Sub-fund’s net assets. The Sub-fund may invest up to 25% of its net assets in hybrid, convertible and subordinated bonds, including up to 20% in contingent convertible bonds (CoCo bonds). The Sub-fund may also invest:

- up to 10% of its net assets in asset-backed securities (ABS) and mortgage-backed securities (MBS); - up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 20% of its net assets in money market instruments and/or cash when market conditions do not

allow sufficient investments with an attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, Ultra Long Term U.S. Treasury Bond Future, US10YR Note Future, 5-Year US Treasury Note Futures and 2-Year US Treasury Note Futures. The Sub-fund may also invest in credit default swaps (CDS) up to 20% of its net assets for investment purposes and up to 100% of its net assets for risk hedging purposes.

A debt security rated investment grade at the time of acquisition which subsequently becomes sub-investment grade, or rated sub-investment grade at the time of acquisition which subsequently becomes distressed or in default, will not be sold unless, in the opinion of the Manager, it is in the interest of the Unitholders to do so.

The Sub-fund does not invest in securities that are defaulting or in difficulty at the time of purchase.

CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities.

394

The net exposure to currencies other than the Sub-fund’s reference currency is limited to 20%. In addition, the Sub-fund will use currency futures, currency future contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 250 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND (ACC) [hedged]




A-AZ FUND (DIS) [hedged]


B-AZ FUND (DIS) [hedged]


Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period56. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website.



395

The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND (DIS) [hedged] and B-AZ FUND (DIS) [hedged] Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND (ACC) [hedged], B-AZ FUND (ACC) [hedged], A-AZ FUND (DIS) [hedged] and B-AZ FUND (DIS) [hedged]. The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Initial subscription and minimum initial subscription amount: the Company Board of Directors reserves the right to launch the Sub-fund at a later date. Initial price is:

EUR 5 for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS) and B-AZ FUND (ACC), A-AZ FUND (ACC) [hedge], A-AZ FUND (DIS) [hedge], B-AZ FUND (DIS) [hedge] and B-AZ FUND (ACC) [hedge]

USD 5 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS) The minimum initial subscription amount is:

• EUR 1,500 for Units of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND (ACC) [hedged], B-AZ FUND (ACC) [hedged], A-AZ FUND (DIS) [hedged] and B-AZ FUND (DIS) [hedged], • USD 1,500 for Units of class A-AZ FUND USD (ACC), A-AZ FUND USD (DIS)


Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND (ACC) [hedge], A-AZ FUND (DIS) [hedge] and A-AZ FUND (DIS) Units:



Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For Units of class B AZ FUND (ACC), B-AZ FUND (DIS), B-AZ FUND (DIS) [hedge] and B-AZ FUND (ACC) [hedge], a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg.

396

Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Manager: AZ SWISS & PARTNERS SA has been appointed as Manager for the Sub-fund, based on an agreement for an indefinite period but subject to termination by either party with six months’ prior notice. AZ SWISS & PARTNERS SA is a Joint Stock Company (Société Anonyme) established under Swiss law with registered office at Via Carlo Frasca, 5 – 6900 Lugano, Switzerland. Management fee and additional variable management fee: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Libor USD + 1% for NON HEDGED Units • 3 months Libor USD + 1% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch.

397

“Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. DISTRIBUTION POLICY: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND (DIS) [hedge], B-AZ FUND (DIS) [hedge], A-AZ FUND USD (DIS) Units and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (ACC) [hedge], B-AZ FUND (ACC) [hedge] and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


398


INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve capital growth until the target maturity date of 31 December 2023. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities issued by governments, supranational institutions or governmental bodies around the world and/or companies around the world. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund will be managed with a target maturity date of 31 December 2023. The portfolio is composed of fixed and/or floating rate debt securities, and has an effective duration that is close to the target maturity date. In order to actively manage the Sub-fund in the interest of investors, the effective duration of the portfolio may deviate by 6 months from the target maturity without substantially changing the risk profile of the Sub-fund. The Sub-fund invests between 70% and 100% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies from developed countries and/or companies with their head office in developed countries. The Sub-fund invests up to 30% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies headquartered in emerging countries. The Sub-fund invests up to 70% of its net assets in debt securities rated sub-investment grade. The Sub-fund may also invest:

- up to 50% of its net assets in hybrid, subordinated (other than contingent convertible bonds (CoCo bonds) and/or perpetual bonds issued by financial and non-financial institutions;




The Sub-fund does not invest in shares and equity-related securities other than those resulting from the conversion of debt securities and up to a maximum of 5% of its net assets. The Sub-fund may invest up to 20% of its net assets in cash and money market instruments up to 3 months before the target maturity date. Cash and money market instruments may represent up to 100% of the Sub-fund’s net assets during the period from 3 months before and up to 3 months after the target maturity date (31 December 2023). The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, Bund Future, Euro BOBL Future, BTP Future, Short term Euro-BTP futures and US10YR Note Future. The Sub-fund may also use credit default swaps (CDS) to manage the overall credit risk of the portfolio, and may invest up to 30% of its net assets in CDS for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund shall not invest in asset-backed securities (ABSs) and/or mortgage-backed securities (MBSs).

399

After the target maturity date of 31 December 2023, the Sub-fund may either be liquidated, if the Company considers that this option is in the best interests of investors, or continue to be managed within the investment limits set out above without reference to a future target date or any life cycle constraints. The Unitholders of the Sub-fund will receive a notice informing them of the decision either to continue the management or to liquidate the Sub-fund. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro. The sub-fund may use currency futures contracts, currency futures and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. The net exposure to currencies other than the Sub-fund’s base currency is limited to 20%.

In addition, the Sub-fund will use currency futures, currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 11) and 12) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period57. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets.



400

Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Initial subscription and minimum initial subscription amount: the Company Board of Directors reserves the right to launch the Sub-fund at a later date. Initial price is: • EUR 5 for A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC) and B-AZ FUND (DIS) Units • USD 5 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)

The minimum initial subscription amount is:



(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions:

A subscription fee is payable for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS):




For B AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus.

401

Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on the Unit class subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus.

An additional variable management fee will be charged for all classes of Units.











402

“Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate.

The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

403








404




rate risk A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD (DIS) USD HEDGED Hedging against EUR Specific Features of the “Servizio distribuzione proventi” (proceeds distribution service): the management Company quarterly (April – July – October - January of each year) makes available to Unitholders that so require a so-called Servizio distribuzione proventi. This service allows any requesting Unitholders - who applied either upon subscription or during their investment period - to quarterly redeem a number of their units in two ways. The first way implies to quarterly (April – July – October – January of each year) make available to Unitholders the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of proceeds (e.g. dividends, coupons, interest received) generated on investments made by the Sub-fund during the period58. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets.



405

Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Initial subscription and Minimum initial subscription amount: the Company Board of Directors reserves the right to launch the Sub-fund at a later date. Initial price is: • EUR 5 for A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC) and B-AZ FUND (DIS) Units • USD 5 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)




(except as required in Chapter 9 of the Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due. Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: A subscription fee is payable for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS):




For B AZ FUND (ACC) and B-AZ FUND (DIS) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus.


406

Conversion: the methods used to convert the Units of one sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on the Unit class subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus.












“Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date,

407

between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate.


Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS) and A-AZ FUND USD (DIS) Units and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC) and A-AZ FUND USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

408

“AZ Bond – Target 2024 USD” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve capital growth until the target maturity date of 31 December 2024. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities issued by companies from around the world denominated in US dollars. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund is a fixed-income securities fund and will be managed with a target maturity date of 31 December 2024. The portfolio is composed of fixed and/or floating rate debt securities, and has an effective duration that is close to the target maturity date. In order to actively manage the Sub-fund in the interest of investors, the effective duration of the portfolio may deviate by 6 months from the target maturity without substantially changing the risk profile of the Sub-fund. The Sub-fund invests between 70% and 100% of its net assets in debt securities and money market instruments issued by companies that have their head office in developed countries. The Sub-fund invests up to 30% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of developed countries. The Sub-fund invests at least 60% of its net assets in debt securities denominated in US dollars. The Sub-fund invests up to 50% of its net assets in debt securities rated sub-investment grade. The Sub-fund invests up to 30% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies of emerging countries and/or companies that are headquartered in emerging countries. The Sub-fund may also invest:


- Up to 15% of its net assets in CoCo bonds; - up to 15% of its net assets in convertible bonds (other than CoCo bonds); - up to 10% of its net assets in asset-backed securities (ABS) and mortgage-backed securities (MBS); - up to 10% of its net assets in units of UCITS and/or other UCIs; and - up to 5% of its net assets in securities that are in default or in difficulty at the time of purchase.

The Sub-fund may invest up to 20% of its net assets in cash and money market instruments up to 3 months before the target maturity date. Cash and money market instruments may represent up to 100% of the Sub-fund’s net assets during the period from 3 months before and up to 3 months after the target maturity date (31 December 2024). The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, Ultra Long Term U.S. Treasury Bond Future, US10YR Note Future, 5-Year US Treasury Note Futures and 2-Year US Treasury Note Futures. The Sub-fund may also use credit default swaps (CDS) to manage the overall credit risk of the portfolio, and may invest up to 30% of its net assets in CDS for investment purposes and up to 100% of its net assets for risk hedging purposes. After the target maturity date of 31 December 2024, the Sub-fund may either be liquidated, if the Company considers that this option is in the best interests of investors, or continue to be managed within the investment limits set out above without reference to a future target date or any life cycle constraints.

409

The Unitholders of the Sub-fund will receive a notice informing them of the decision either to continue the management or to liquidate the Sub-fund. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar. The Sub-fund may use currency futures contracts, currency futures and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. The net exposure to currencies other than the Sub-fund’s base currency is limited to 20%.

In addition, the Sub-fund will use currency future contracts, currency futures and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 250%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 11) and 12) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND USD (ACC) USD NON HEDGED No A-AZ FUND USD (DIS) USD NON HEDGED No A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No B-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND (ACC) [hedged]




A-AZ FUND (DIS) [hedged]


B-AZ FUND (DIS) [hedged]




410

For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors joining this service will therefore see a number of their units redeemed based on the proceeds collected by the Sub-fund and on a percentage basis as determined by the Management Company. In unfavourable market scenarios, the Management Company may suspend distribution of proceeds, in some cases for more than three months, giving specific notice on the above mentioned website. The second way involves to quarterly (April – July – October – January of each year) make available to Unitholders a percentage of the countervalue of their investment in the Sub-fund regardless of the unit net asset value and of the collection (or failed collection) of proceeds by the Sub-fund in the relevant period. Each investor will set the percentage of redemption requested over the period and this percentage may be higher or lower than the percentage determined by the Management Company in the first way of Servizio distribuzione proventi. This service can be stopped by the Unitholders at any time, in which case the automatic redemption under the Servizio distribuzione proventi will end. The "Servizio distribuzione proventi" (proceeds distribution service) is not available for investors subscribing class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND (DIS) [hedged] and B-AZ FUND (DIS) [hedged] Units. Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND (ACC) [hedged], B-AZ FUND (ACC) [hedged], A-AZ FUND (DIS) [hedged] and B-AZ FUND (DIS) [hedged]. The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.

Initial subscription and minimum initial subscription amount: the Company Board of Directors reserves the right to launch the Sub-fund at a later date. Initial price is: • EUR 5 for Units of class A-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (ACC), B-AZ FUND (DIS), A-AZ FUND (ACC) [hedged], B-AZ FUND (ACC) [hedged], A-AZ FUND (DIS) [hedged] and B-AZ FUND (DIS) [hedged] • USD 5 for Units of class A-AZ FUND USD (ACC) and A-AZ FUND USD (DIS)


• EUR 1,500 for class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND (ACC) [hedged], B-AZ FUND (ACC) [hedged], A-AZ FUND (DIS) [hedged] and B-AZ FUND (DIS) [hedged],

• USD 1,500 for Units of class A-AZ FUND USD (ACC), A-AZ FUND USD (DIS) (except as required in chapter 9 of this Prospectus for multi-annual investment plans) including all subscription fees and costs (please see Appendix II of this Prospectus). The amount to be allocated to the Sub-fund may also be lower, but must be at least EUR 500 (or USD 500 depending on type of Units subscribed), and provided that the initial subscription amount for AZ Fund 1 Fund totals at least EUR 1,500 (or USD 1,500 depending on type of Units subscribed), including all subscription fees and costs, where due.


Subscriptions and Redemptions: A subscription fee is payable for class A-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND USD (DIS), A-AZ FUND (ACC) [hedge], A-AZ FUND (DIS) [hedge], A-AZ FUND USD (ACC), A-AZ FUND (DIS) Units:



411


Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For Units of class B AZ FUND (ACC), B-AZ FUND (DIS), B-AZ FUND (DIS) [hedge] and B-AZ FUND (ACC) [hedge] a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. MANAGER: AZ SWISS & PARTNERS SA has been appointed as Manager for the Sub-fund, based on an agreement for an indefinite period but subject to termination by either party with six months’ prior notice. AZ SWISS & PARTNERS SA is a Joint Stock Company (Société Anonyme) established under Swiss law with registered office at Via Carlo Frasca, 5 – 6900 Lugano, Switzerland. MANAGEMENT FEE AND ADDITIONAL VARIABLE MANAGEMENT FEE: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:

• 3 months Libor USD + 1.5% for NON HEDGED Units • 3 months Libor USD + 1.5% + Hedging costs for HEDGED Units


412

“Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-AZ FUND (DIS), B-AZ FUND (DIS), A-AZ FUND USD (DIS), A-AZ FUND (DIS) [hedged] and B-AZ FUND (DIS) [hedged] Units, and shall reinvest revenue of Unitholders of class A-AZ FUND (ACC), B-AZ FUND (ACC), A-AZ FUND USD (ACC), A-AZ FUND (ACC) [hedged] and B-AZ FUND (ACC) [hedged] Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.

Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter

413

"AZ Equity – Italian Small-Mid Cap" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities mainly listed on the Italian stock exchange and/or issued by companies that have their head office and/or conduct a predominant part of their economic activities in Italy, preferably small and mid-cap companies, namely companies that are not included in the FTSE MIB index. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests directly or indirectly at least 80% of its net assets in shares and other equity-related securities of companies that have their head office in Italy and are listed on an Italian stock exchange and/or on any other stock exchange in the world. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices and other similar securities. The Sub-fund invests at least 70% of its net assets in shares and other equity-related securities issued by companies that are not included in the FTSE MIB index. The Sub-fund may also invest:

- up to 20% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies in Europe and/or companies with their head office in Europe, without rating constraints;

- up to 20% of its net assets in shares and other equity-related securities of companies that have their head office in Europe and are listed outside an Italian stock exchange with a market capitalisation of less than €10 billion at the time of purchase;

- up to 10% of its net assets in convertible bonds; - up to 10% of its net assets in units of UCITS and/or of other UCIs; and - up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an


The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices and other similar securities, including, among others, FTSE/MIB Index Future, Euro STOXX 50 Future, FTSE Italia STAR Index, FTSE Italia Mid Cap Index, STOXX Europe Mid 200 Index, STOXX Europe Small 200 Index and German DAX Mid-Cap Index. The Sub-fund may also invest in total return swap contracts. The gross notional exposure to the total return swap contracts shall not exceed 10% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 10% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts are the Italian small and mid-cap indices, including, among others, the FTSE Italia Mid Cap Index. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type)

414





• EUR 5 for Units of class A-AZ FUND (ACC) and B-AZ FUND (ACC) • USD 5 for Units of class A-AZ FUND USD (ACC)








Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

415

Manager: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Manager for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. MANAGEMENT FEE AND ADDITIONAL VARIABLE MANAGEMENT FEE: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

416

Distribution Policy: the Sub-fund shall apply an income capitalisation policy.



417

"AZ Equity – China" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies that have their head office and/or conduct a predominant part of their economic activities and/or whose assets are located in the Greater China region, and listed on domestic exchanges in Mainland China and/or on any other stock exchange in the world. As part of the Sub-Fund's investment policy, the "Greater China" region includes Mainland China, Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests directly or indirectly at least 80% of its net assets in shares and other equity-related securities issued by companies that have their head office in the "Greater China" region, and are listed on a "Greater China" stock exchange and/or on any other stock exchange in the world. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices and other similar securities. In particular, the Sub-fund invests at least 80% of its net assets in:

- shares and other equity-related securities listed on the stock exchange in Mainland China (through Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect);

- shares and other equity-related securities listed on the Hong Kong stock exchange (including Chinese Class A shares and Chinese Class H shares);

- shares and other equity-related securities listed on the Taiwan Stock Exchange; - Chinese American Depositary Receipts (ADR) listed in the United States; - futures and options on shares and other equity-related securities and/or indices on shares and other

equity-related securities linked to the Chinese stock exchange, including, among others, the FTSE CHINA A50 index traded in Singapore, H Shares HSCEI Futures and Hang Seng HK Futures;

- financial contracts for differences (CFDs) on shares and other equity-related securities and/or equity indices and other similar securities of companies belonging to the "Greater China" region.


- up to 10% of its net assets in debt securities with a residual maturity of up to 12 months and money market instruments, denominated in US dollars or offshore renminbi (CNH), issued by governments, supranational institutions and governmental bodies in the "Greater China" region and companies headquartered in the "Greater China" region;

- up to 10% of its net assets in units of UCITS and/or other UCIs; and - up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified. The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type).

418

LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraph 3), 4), 5), 7), 8) of section III, chapter 3, of this Prospectus. In addition to the risk factors set out in the general section of the Prospectus in section III "Risk Factors" of chapter 3, the following specific risk factors are associated with the Sub-fund's investments: Specific risks linked to investment in Chinese class A shares In addition to the risks linked to investments in securities from emerging and less developed countries, the Sub-fund may be exposed to specific risks linked to investment in Chinese class A shares via Stock Connect. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference currency Type of hedging Hedging against

exchange rate risk A-AZ FUND (ACC) EURO NON HEDGED No B-AZ FUND (ACC) EURO NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.










Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg.

419


Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. MANAGER: AZ Investment Management Singapore Ltd has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZ Investment Management Singapore Ltd is a Limited Company established under Singapore law. Its registered office is at 2 9 Temasek Boulevard, Suntec Tower 2, #44-02, Singapore 038989. INVESTMENT ADVISOR: AN ZHONG (AZ) INVESTMENT MANAGEMENT HONG KONG Ltd. has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. Consulting services will be provided directly by AZ Investment Management Singapore Ltd (i.e. the Manager). An Zhong (AZ) Investment Management Hong Kong Ltd. is a Limited Company established under Hong Kong law, with registered office at Suite 2702, 27/F, The Centrium, 60 Wyndham Street, Hong Kong. MANAGEMENT FEE AND ADDITIONAL VARIABLE MANAGEMENT FEE: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



420

“Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall apply an income capitalisation policy.


421

"AZ Equity - Borletti Global Lifestyle" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies worldwide, with a focus on the consumer sector. The bottom-up selection procedure for shares and other equity-related securities is focused on companies managed with a high standard of quality, current robust business models, a high return on invested operating capital, high underwriting restrictions, a dominant market position, comparative advantages and a high potential for reinvestment growth from their cash flows to high levels of return. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets directly or indirectly in shares and other equity-related securities issued by companies with their head office throughout the world. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices. The Sub-fund may also invest:

- Up to 30% of its net assets in shares and other equity-related securities issued by companies with their head office and/or which carry out a predominant part of their economic activities in emerging countries;

- Up to 30% of its net assets in investment grade debt securities issued by companies having their head office in developed countries;

- Up to 10% of its net assets in units of UCITS and/or of other UCIs; - Up to 30% of its net assets in cash when market conditions do not allow sufficient investments with an


The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and/or other equity-related securities, equity indices, including, among others, E-mini S&P500 Future, NASDAQ 100 E-Mini futures and Eurostoxx 50 Future. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:

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A-AZ FUND (ACC) EUR NON HEDGED No B-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND USD (ACC) USD NON HEDGED No

Unit class: the Sub-fund shall issue Units of classes A-AZ FUND (ACC), B-AZ FUND (ACC), and A-AZ FUND USD (ACC). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus.










Multi-annual investment plan described in Chapter 9 of the Prospectus is not available for investors in Luxembourg. For B AZ FUND (ACC) Units, a redemption fee is due, calculated on the amount to be redeemed, as indicated in Appendix II of this Prospectus. Multi-annual investment plan described in chapter 9 of this Prospectus is not available in Luxembourg. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500 (or USD 500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus.

Investment Advisor: Borletti Management Ltd. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 09/11/2018 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ prior notice. Borletti Management Ltd. a company incorporated and existing under the UK laws, having its registered office at 60, Sloane Avenue, London SW3 3BX. Management fee and additional variable management fee: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units.

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The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“AZ Bond – Long Term Credit Opportunities” Sub-fund factsheet

General information INVESTMENT OBJECTIVE: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. Investment strategy: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of fixed and/or variable income debt securities issued by governments, supranational institutions or governmental bodies worldwide and/or companies worldwide. The Sub-fund focuses preferably on high-yield securities such as high-yield bonds and emerging market debt securities, including frontier markets. Frontier markets are less advanced capital markets than in developing countries. Frontier markets are better established than the least developed countries but not as well established as emerging countries because they are too small, entail more inherent risks or are not sufficiently liquid in order to be considered as an emerging market. For the purposes of the investment policy of the Sub-fund, frontier markets are the markets featuring in the NexGem Index and include, among others, Angola, Azerbaijan, Bolivia, Costa Rica, Ivory Coast, Ghana, Honduras, Jamaica, Kenya, Mongolia, Nigeria, Papua New Guinea, El Salvador, Senegal, Sri Lanka and Zambia. Investment policy and restrictions: The Sub-fund invests up to 100% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries and/or companies headquartered in a developed country. The Sub-fund invests up to 60% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of emerging countries (including frontier markets) and/or companies headquartered in an emerging country (including frontier markets); Cumulative investments in debt securities issued by frontier market issuers do not exceed 30% of the Sub-fund’s net assets. The Sub-fund invests up to 70% of its net assets in debt securities with a sub-investment grade rating and up to 30% of its net assets in unrated debt securities. A debt security rated investment grade at the time of acquisition which subsequently becomes sub-investment grade, or is rated sub-investment grade at the time of acquisition and subsequently becomes distressed or in default, will not be sold unless, in the opinion of the Manager, it is in the interest of the Unitholders to do so. The Sub-fund invests up to 60% of its net assets in hybrid bonds, subordinated bonds (other than contingent convertible bonds (CoCo bonds)) and/or perpetual bonds issued by financial and non-financial institutions, and up to 20% of its net assets in CoCo bonds including, among others, “additional tier 1”, “restricted Tier 1” and “Tier 2” CoCo bonds. The Sub-fund may also invest:

• up to 30% of its net assets in convertible bonds (other than CoCo bonds); • up to 10% of its net assets in distressed securities (including up to 5% of its net assets in defaulted

securities); • up to 10% of its net assets, either directly or indirectly, in equities and other equity-related securities

issued by companies worldwide, including emerging countries; indirect exposure to these companies is obtained by investing in equity derivative financial instruments and equivalent derivative financial instruments and/or equity indices;

• up to 10% of its net assets in units of UCITS and/or of other UCIs; • up to 20% of its net assets in cash when because of market conditions it is not possible to identify

sufficient investments with an attractive return potential and risk profile.

425


• futures, options and contracts for difference (CFD) on interest rates, debt securities and ETFs that invest in debt securities, including, among others, Bund Future, Euro BOBL Future, BTP Future, Short term Euro-BTP futures and US10YR Note Future;

• futures, options and contracts for difference (CFD) on equities and other equity-related securities, equity indices and indices of other equity-related securities, including among others E-mini S&P500 Future, Eurostoxx 50 Future and MSCI Emerging Markets Index Futures.

The Sub-fund may also use credit default swaps (CDS) to manage the overall credit risk of the portfolio, and may invest up to 30% of its net assets in CDS for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund does not invest in asset-backed securities (ABS) and/or mortgage-backed securities (MBS). Currency exposure and currency hedging: The base currency of the Sub-fund is the euro. The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency forwards and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to specific currencies in line with market opportunities. In addition, the Sub-fund will use currency forwards, currency futures and currency options for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). Leverage effect: The Sub-fund aims at maintaining a leverage effect lower than 300%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as defined in detail in paragraphs 11), 12) and 26) of section III, chapter 3 of this Prospectus. Base currency of the Sub-fund: EUR Reference currency the net asset value (“N.A.V. “) per Sub-fund Unit will be expressed as follows: Sub-fund Unit Reference

currency Type of hedging Hedging against currency

risk A-AZ FUND (ACC) EUR NON HEDGED No A-AZ FUND (DIS) EUR NON HEDGED No A-AZ FUND USD Hedged (ACC) USD HEDGED Hedged against the EUR A-AZ FUND USD Hedged (DIS) USD HEDGED Hedged against the EUR

Specific features of the “Servizio distribuzione proventi” (income distribution service): the Management Company makes available to Unitholders that so wish a so-called Servizio distribuzione proventi. This service is available on a quarterly basis (April – July – October - January of each year) This service allows any Unitholders that have signed up for the service - either upon subscription or during their investment period - to redeem quarterly a number of their units in two ways.

426

The first way involves making available to Unitholders on a quarterly basis (April – July – October – January of each year) the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of income (e.g. dividends, coupons, interest on assets) received on investments made by the Sub-fund during the period60. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors signing up for this service will therefore see a number of their units redeemed depending on the income received by the Sub-fund, on the basis of a percentage determined by the Management Company. In unfavourable market conditions, the Management Company may suspend the distribution of income, in some cases for more than three months, giving specific notice on the abovementioned website. The second way involves making available to Unitholders on a quarterly basis (April – July – October – January of each year) a percentage of the countervalue of their investment in the Sub-fund, regardless of the net asset value of the units and whether or not income is received by the Sub-fund in the relevant period. Each investor will set the percentage of redemption that they want over the period in question and this percentage may be higher or lower than the percentage determined by the Management Company in the first Servizio distribuzione proventi method. Unitholders can cancel this service at any time, in which case the Servizio distribuzione proventi automatic redemption will end. The Servizio distribuzione proventi is not available to investors that subscribe to A-AZ FUND (DIS) and A-AZ FUND USD Hedged (DIS) Units. Unit classes: the Sub-fund will issue A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD Hedged (ACC) and A-AZ FUND USD Hedged (DIS) Units. These different Unit classes are defined in chapter 8 and Appendix II of this Prospectus. Initial subscription and minimum initial subscription amount: the Board of Directors of the Management Company reserves the right to launch the Sub-fund at a later date. The initial price is: • EUR 5.00 for A-AZ FUND (ACC) and A-AZ FUND (DIS) Units • USD 5.00 for A-AZ FUND USD Hedged (ACC) and A-AZ FUND USD Hedged (DIS) Units The minimum initial subscription amount is:

• EUR 1,500.00 for A-AZ FUND (ACC) and A-AZ FUND (DIS) Units, • USD 1,500.00 for AZ FUND USD Hedged (ACC) and A-AZ FUND USD Hedged (DIS) Units

including all subscription fees and costs (please see Appendix II of this Prospectus). The amount intended for the Sub-fund may also be lower, but not lower than EUR 500 (or USD 500 depending upon the class of Unit subscribed), and where the amount of the initial subscription to the Fund AZ Fund 1 is globally equal to at least EUR 1,500 (or USD 1,500 depending upon the class of Unit subscribed) including all subscription fees and costs, where due. Frequency of net asset value calculation: the N.A.V. will be calculated at weekly intervals, specifically on each Monday that is a full bank working day and on which the National Stock Exchange is open in Luxembourg (Calculation Day), or failing that the following working day. Subscriptions and redemptions:

A maximum subscription fee of 6% of the amount invested will be payable for Units of the class A-AZ FUND (ACC), A-AZ FUND (DIS), A-AZ FUND USD Hedged (ACC) and A-AZ FUND USD Hedged (DIS), as indicated in Appendix II of this Prospectus for lump-sum subscriptions (please see chapter 9 of this Prospectus).

The multi-annual investment plan described in Chapter 9 of this Prospectus is not available for this Sub-fund. (60) 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


427

The subscription fee will be paid to the distributor. Subscription/redemption lists are closed at the times and dates indicated in Appendix II of this Prospectus. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of this Prospectus. As for the conversion fee, please see Appendix II of this Prospectus. The minimum transferable amount is EUR 500.00 (or USD 500.00 depending upon the class of Unit subscribed). Conversion lists are closed at the times and dates indicated in Appendix II of this Prospectus. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Management Company on the first Valuation Date following this Calculation Period. If Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will be applied and become payable to the Management Company on the first Valuation Date following the Calculation Period during which the Units were redeemed. “Reference index” means: • 3-month Euribor + 2.5% for NON HEDGED Units • 3-month Euribor + 2.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class, “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. Distribution policy: the Sub-fund will distribute income to Unitholders of classes A-AZ FUND (DIS) and A-AZ FUND USD Hedged (DIS) and will reinvest income for Unitholders of classes A-AZ FUND (ACC) and A-AZ FUND USD Hedged (ACC). Income is distributed quarterly with reference to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.

428

Listing: this Sub-fund’s Units will not be listed on the Luxembourg stock exchange. Annual registration tax: an annual registration tax of 0.05% is payable, calculated based on the Sub-fund’s net assets at the end of each quarter.

429

APPENDIX II: VARIOUS UNIT CLASSES FOR RETAIL INVESTORS AND RESPECTIVE FEES.

All Unit Classes (ACC), (DIS), (Euro Hedged - ACC) and (Euro non Hedged - ACC)

A-AZ FUND AP-AZ FUND

A-PLATFORMS

A-AZ FUND

TW

B-AZ FUND B-AZ FUND TW

D-AZ FUND (DIS)

Subscription Max 46% (1) Max 5% 0 0

Brokerage (2) 1% 1%

Redemption 0 0 Decreasing (3)

Decreasing (4)

Conversion to A-AZ FUND EUR 25.00 (5) to B-AZ FUND EUR 25.00

(6)

Management fee (annual, in %) (7) AZ Equity – Best Value 2.20 2.20 AZ Equity – Borletti Global Lifestyle 2.00 2.00 AZ Equity – Brazil Trend 1.80 Units A-AZ

FUND

2.00 Units A–PLATFORM

1.80 Units B-AZ FUND

European Trend AZ Equity – America AZ Equity – Japan AZ Equity – ASEAN Asset Dynamic Small Cap Europe Emerging Market Europe AZ Equity – Emerging Latin America Emerging Market Asia Active Selection Italian Trend Trend Formula 1 - Absolute AZ Alternative – Global Macro Conservative Formula Commodity Trading QTrend Global Equity AZ Allocation – Global Income CGM Opportunistic European CGM Opportunistic Global AZ Equity – Global Growth AZ Equity – Global Emerging FoF Global Emerging Markets Dividend Equity Options AZ Alternative – Commodity Alpha AZ Equity – New World Opportunities AZ Equity – Global ESG

1.80 1.80 2.15 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80

1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80

1.80

1.80 1.80 2.15 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80

1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80

1.80

430

AZ Equity – Egypt 1.80 A –AZ FUND Units

2.00 A – PLATFORM

Units

1.80

AZ Equity – Global Quality AZ Alternative – Momentum AZ Allocation – Global Aggressive AZ Equity – China AZ Equity – Italian Small-Mid Cap AZ Equity – Long Term Equity Opportunities

2.25 1.80 1.80 1.80 1.80 1.80

2.25 2.25 1.80 1.80 1.80 1.80

2.25

Global Infrastructure AZ Alternative - Flex

1.65 1.65

1.65

1.65 1.65

1.65

Strategic Trend Bond Target 2022 Equity Options European Dynamic AZ Allocation – Balanced FoF AZ Alternative – Multistrategy FoF Bond Target 2023 Equity Options Cat Bond Fund Plus QInternational Core Brands Asset Timing AZ Allocation – Turkey Convertible Bond

1.50 1.35 1.50 1.50 1.50 1.35

1.50(*) 1.50 1.50 1.50 1.50 1.50

1.50 1.35 1.50 1.50 1.50 1.35

1.50(*) 1.50 1.50 1.50 1.50 1.50

1.35

1.35

Italian Excellence 7.0 AZ Bond – ABS AZ Allocation – Risk Parity Factors

1.50 1.50 (**)

1.50

1.50 1.50 (**)

1.50

Formula 1 – Alpha Plus Global Currencies & Rates Bond Target 2020 Equity Options Bond Target 2021 Equity Options AZ Alternative - Arbitrage Arbitrage Plus

1.35 (***) 1.35 1.35 1.35 1.35 1.65

1.35 (***) 1.35 1.35 1.35 1.35 1.65

1.35 1.35

Conservative AZ Allocation – Conservative FoF Carry Strategies AZ Bond – Euro Aggregate Short Term US Income Credit Formula 1 - Conservative QBond Global Unconstrained Bond Fund International Bond High Income Renminbi Opportunities Renminbi Opportunities - Fixed Income CGM Opportunistic Government Bond AZ Bond – Euro Corporate AZ Bond – USD Corporate Global Sukuk Alternative Carry Opportunity

1.20 1.20 1.20

1.20 (***)

1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20

1.20

1.20 1.20

1.20 1.20

1.20 1.20 1.20

1.20 (***)

1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20

1.20

1.20 1.20 1.20 1.20

Aggregate Bond Euro Plus Patriot Hybrid Bonds

1.20 1.20 1.20

1.20 1.20 1.20 1.20

1.20

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AZ Allocation – Global Conservative Real Plus AZ Bond - Emerging Local Currency FoF AZ Bond - Emerging Hard Currency FoF Italian Excellence 3.0 AZ Alternative – Smart Risk Premia AZ Bond – Income Opportunities AZ Bond – Target 2021 AZ Bond – Sustainable Hybrid AZ Bond – Mid Yield AZ Bond – Global Macro Bond AZ Bond – Target 2024 USD AZ Bond – Long Term Credit Opportunities

1.20 1.20 1.20

1.20

1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20

1.20 1.20 1.20

1.20

1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20

AZ Bond – Target 2024 Short Term Global High Yield Munis Yield AZ Bond – Target 2023 AZ Bond – Target 2025 AZ Bond – US Dollar Aggregate

1.00 1.00 1.00 1.00 1.00 1.00

1.00

1.00 1.00 1.00 1.00 1.00 1.00

1.00

Institutional Target 0.60 A –AZ FUND

Units

0.80 A –AZ FUND CORPORATE

Units

AZ Equity - Escalator 0.80 (A) 0.80 (A) AZ Bond – Income Dynamic AZ Bond – Enhanced Yield AZ Alternative – Capital Enhanced

0.72 (****) 0.20 (*****)

0.25

0.72 (****) 0.20 (*****)

0.25

(A) The Sub-fund management fee is: for the first year: 0.8% for the second year: 1.1% for the third year: 1.4% for the fourth year: 1.7% from the fifth year on: 1.8%

(*) Up to 31 December 2020 the Sub-fund’s management fee is equal to 0.50% (**) Up to 31 December 2020 the Sub-fund’s management fee is equal to 1.25% (***) Up to 31 December 2020 the Sub-fund management fee is 0.80% (****) Up to 31 December 2020 the Sub-fund management fee is 0.24% (*****) Up to 31 December 2020 the Sub-fund management fee is 0.10%

(1) Maximum 6% on the nominal value of the plan for all subscriptions to the AZ Bond – Long Term Credit Opportunities, AZ Equity – Long Term Equity Opportunities Sub-funds. Maximum of 4% of the par value of the plan for all subscriptions in the Strategic Trend, Active Selection, AZ Alternative – Multistrategy FoF, AZ Allocation – Global Income, Italian Trend, Trend, European Trend, AZ Equity – America, AZ Equity – Japan, Formula 1 Conservative, Formula 1 – Alpha Plus, Formula 1 – Absolute, AZ Alternative – Global Macro Conservative, Formula Commodity Trading, QBond, QInternational,

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QTrend, Asset Dynamic, Global Equity, CGM Opportunistic European and CGM Opportunistic Global Sub-funds via multi-annual investment plans. Maximum of 3% of the par value of the plan for all subscriptions via multi-annual investment plans in other Sub-funds.

Maximum of 2% of the amount invested for all lump-sum subscriptions. For subscriptions in the AZ Bond – Income Dynamic, AZ Bond – Enhanced Yield, AZ Alternative – Capital Enhanced and Institutional Target Sub-funds no subscription fee is charged.

(2) Of the amount invested for all lump-sum subscriptions in the Formula 1 – Conservative, Formula 1 – Alpha Plus, Formula 1 – Absolute, AZ Alternative – Global Macro Conservative, Formula Commodity Trading, Strategic Trend, Active Selection, AZ Alternative – Multistrategy FoF, AZ Allocation – Global Income, Trend, Italian Trend, European Trend, AZ Equity – America, AZ Equity – Japan, QBond, QInternational, QTrend, Global Unconstrained Bond Fund, Asset Dynamic, Global Equity Cat Bond Fund Plus, CGM Opportunistic European and CGM Opportunistic Global Sub-funds.

(3) According to the duration of the investment: one year or less: 2.5% 2 years or less: 1.75% 3 years or less: 1% upwards of 3 years: 0%

As regards the AZ Bond – Income Dynamic, AZ Bond – Enhanced Yield and AZ Alternative – Capital Enhanced Sub-funds, the above-mentioned fees are not applicable, regardless of the duration of the investment, in the event that the redemption application refers to units underwritten by the same Sub-fund and never transferred to other Sub-funds. It should be noted that, for the application of a redemption fee, and in the event that one or more conversions take place prior to redemption, the fee is established based on the “total duration” of the investment in class B-AZ FUND Units, i.e. following the first subscription to these Units by the investor in question. For the purpose of determining the above-mentioned "total duration", the duration for which units are held in the AZ Bond – Income Dynamic, AZ Bond – Enhanced Yield and AZ Alternative – Capital Enhanced Sub-funds is never taken into considered.

(4) According to the duration of the investment: one year or less: 4.0% 2 years or less: 3.0% 3 years or less: 2.0% 4 years or less: 1.0% from 4 years on: 0%

It should be noted that, for the application of a redemption fee, and in the event that one or more conversions take place prior to redemption, the fee is established based on the “total duration” of the investment in class B-AZ FUND TW Units, i.e. following the first subscription to these Units by the investor in question.

(5) For any conversion from the Institutional Target, AZ Bond – Enhanced Yield, AZ Alternative – Capital Enhanced, AZ Bond – Income Dynamic Sub-funds, to any other Sub-fund of the Fund, a maximum aggregate fee of 3% shall be applied to the amount transferred. However, the fee of EUR 25 shall not be applied. For conversions from other Sub-funds to Formula 1 – Conservative, Formula 1 – Alpha Plus, Formula 1 – Absolute, AZ Alternative – Global Macro Conservative, Formula Commodity Trading, Strategic Trend, Active Selection, AZ Alternative – Multistrategy FoF, AZ Allocation – Global Income, Trend, Italian Trend, European Trend, AZ Equity – America, AZ Equity – Japan, QBond, QInternational, QTrend, Global Unconstrained Bond Fund, Asset Dynamic, Global Equity, Cat Bond Fund Plus, CGM Opportunistic European and CGM Opportunistic Global Sub-funds a fee of 1% shall be applied to the amount transferred.

(6) For conversions from other Sub-funds to Formula 1 – Conservative, Formula 1 – Alpha Plus, Formula 1 – Absolute, AZ Alternative – Global Macro Conservative, Formula Commodity Trading, Strategic Trend, Active Selection, AZ Alternative – Multistrategy FoF, AZ Allocation – Global Income, Trend, Italian Trend, European Trend, AZ Equity – America, AZ Equity – Japan, QBond, QInternational, QTrend, Global Unconstrained Bond Fund, Asset Dynamic, Global Equity, Cat Bond Fund Plus, CGM Opportunistic European and CGM Opportunistic Global Sub-funds a fee of 1% shall be applied to the amount transferred. In the case of conversions from the AZ Bond – Enhanced Yield, AZ Alternative – Capital Enhanced, or AZ Bond – Income Dynamic Sub-funds to other Sub-funds, the fee of EUR 25 shall not be applied.

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(7) The management fee, based on the total value of each Sub-fund (net of all various liabilities other than the management fee and any additional variable management fee), for each past month, shall be payable on a monthly basis. SUBSCRIPTION, REDEMPTION AND CONVERSION LISTS (valid for all Sub-funds with the exception of “Cat Bond Fund Plus”, “AZ Equity - Egypt”, “AZ Equity – Long Term Equity Opportunities” and “AZ Bond – Long Term Credit Opportunities” for which it is recommended to refer to the lists indicated above) TYPOLOGY 1 Sub-funds: European Trend, AZ Equity – America, AZ Equity – Global Quality, Strategic Trend, Active Selection, AZ Allocation – Global Income, Global Unconstrained Bond Fund, CGM Opportunistic European, CGM Opportunistic Global, CGM Opportunistic Government Bond, AZ Bond – Euro Corporate, Formula 1 – Conservative, Bond Target 2023 Equity Options, Bond Target 2020 Equity Options, Bond Target 2021 Equity Options, Bond Target 2022 Equity Options, Global Currencies & Rates, Formula 1 – Absolute, Conservative, AZ Bond – Euro Aggregate Short Term, AZ Bond – Target 2024, US Income, Patriot, Real Plus, Aggregate Bond Euro Plus, QBond, QTrend, QInternational, AZ Bond – Income Dynamic AZ Bond – Enhanced Yield, AZ Alternative – Capital Enhanced, AZ Equity – Global Growth, Core Brands, AZ Allocation – Turkey, AZ Allocation – Global Conservative, Hybrid Bonds, Institutional Target, AZ Alternative – Arbitrage, Arbitrage Plus, Equity Options, AZ Alternative – Commodity Alpha, Global Infrastructure, Munis Yield, Italian Excellence 3.0, Italian Excellence 7.0, AZ Bond – USD Corporate, AZ Alternative – Smart Risk Premia, AZ Bond – Target 2021, AZ Equity – Best Value, AZ Bond – Mid Yield, AZ Bond – Sustainable Hybrid, AZ Equity – Brazil Trend, AZ Allocation – Global Aggressive, AZ Allocation – Risk Parity Factors, AZ Bond – Global Macro Bond, AZ Bond – Target 2023, AZ Bond – Target 2025, AZ Bond – Target 2024 USD, AZ Bond – US Dollar Aggregate, AZ Equity – Italian Small-Mid Cap, AZ Equity – Borletti Global Lifestyle, AZ Equity – Emerging Latin America, TYPOLOGY 2 Sub-funds: N/A TYPOLOGY 3 Sub-funds: Asset Dynamic, AZ Allocation – Balanced FoF, Small Cap Europe, AZ Allocation – Conservative FoF, Emerging Market Europe, Emerging Market Asia, Global Equity, Credit, International Bond, High Income, Renminbi Opportunities, Renminbi Opportunities – Fixed Income, European Dynamic, Trend, Italian Trend, AZ Alternative – Global Macro Conservative, Formula Commodity Trading, Asset Timing, AZ Equity – Asean, Carry Strategies, Global Sukuk, AZ Bond – Emerging Local Currency FoF, AZ Equity – Global Emerging FoF, AZ Bond – Emerging Hard Currency FoF, Global Emerging Markets Dividend, Convertible Bond, Short Term Global High Yield, Alternative Carry Opportunity, AZ Equity – New World Opportunities, AZ Bond – Income Opportunities, AZ Equity – Global ESG, AZ Equity – Escalator, AZ Alternative – Momentum, AZ Alternative – Flex, AZ Equity – Japan, AZ Equity – China, AZ Alternative – Multistrategy FoF. TYPE 4 Sub-funds: Formula 1 – Alpha Plus. Subscription, redemption or conversion lists are closed at 2.30 p.m. on the day before the net asset value is calculated (Valuation Day), or - in the event that the transactions do not take place via the Main Distributor in its capacity as nominee – before:

- 00.00 on the day before the net asset value Valuation Day for transactions involving TYPE 2 Sub-funds, in whole or in part;

- 2.30 p.m. two days prior to the net asset value Valuation Day for transactions involving TYPE 3 SUB-FUNDS (*), in whole or in part;

- 2:30 p.m. on the third business day prior to the net asset value Valuation Day for transactions involving TYPE 4 Sub-funds. Subscription, redemption or conversion applications received before the deadlines shall be processed at the net asset value of the Valuation Date prior to the Valuation Day. Subscription, redemption or conversion applications received after the deadlines shall be processed at the net asset value of the following Valuation Date (as described in the individual Sub-fund factsheets).

(*) In the sole case of applications for conversion from TYPE 1, 2, 4 Sub-funds into TYPE 3 Sub-funds, subscriptions to TYPE 3 Sub-funds are settled one day after the units of TYPE 1, 2, 4 Sub-funds have been redeemed. Subscription and “entry” conversion lists for the following Sub-funds were accepted until:

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• “Bond Target 2021 Equity Options” Sub-fund: subscriptions and conversions into this Sub-fund were accepted until 2.30 p.m., 12 months after 1 January 2018.

• “Bond Target 2020 Equity Options”: subscriptions and conversions into this Sub-fund were accepted until 2.30 p.m., 12 months after 1 January 2017. For the above-mentioned Sub-funds, the Company reserves the right to (i) close the initial subscription period in advance (ii) open again the subscription and conversion lists into the same Sub-funds. Any changes in the above-specified periods will be communicated to Investors via a notice published on the website of the Company. Subscription, redemption and conversion lists for only the Sub-funds “CAT BOND FUND PLUS” “AZ EQUITY - EGYPT”, “AZ EQUITY – LONG TERM EQUITY OPPORTUNITIES” AND “AZ BOND – LONG TERM CREDIT OPPORTUNITIES” With reference to the operations concerning the “Cat Bond Fund Plus”, “AZ Equity – Egypt”, “AZ Equity – Long Term Equity Opportunities” and “AZ Bond – Long Term Credit Opportunities” Sub-funds

• Subscription and “entry” conversion lists are closed: 1. at 2.30 p.m. on the day prior to the eve of the net asset value Valuation Day for the “AZ Equity – Egypt” Sub-

fund; 2. at 2.30 p.m. on the tenth business day before the net asset value Valuation Day for the "Cat Bond Fund Plus"

Sub-fund; 3. at 2:30 p.m. on the fifth business day prior to the net asset value calculation date of the “AZ Equity – Long

Term Equity Opportunities” and “AZ Bond – Long Term Credit Opportunities” Sub-funds. 4. • Redemption and conversion lists from said Sub-funds are closed: 1. at 2.30 p.m. on the tenth working day prior to the net asset value Valuation Day for the “AZ Equity – Egypt”

Sub-fund; 2. at 2.30 p.m. on the fourteenth business day before the net asset value Valuation Day for the “Cat Bond Fund

Plus” Sub-fund; 3. at 2:30 p.m. on the fifth business day prior to the net asset value calculation date of the “AZ Equity – Long

Term Equity Opportunities” and “AZ Bond – Long Term Credit Opportunities” Sub-funds. Subscription, redemption or conversion lists for the “AZ Bond - ABS" Sub-fund only With reference to the operations concerning the "AZ Bond - ABS" Sub-fund:

• subscription and conversion lists into the Sub-funds are closed at 2.30 p.m. of the third working day prior to the net asset value Valuation Day.

• redemption and conversion lists from the Sub-fund are closed at 2.30 p.m. of the fifth working day

prior to the net asset value Valuation Day. Subscription, redemption and conversion requests received before the respective deadlines will be handled at the net asset value on the Valuation Date prior to the valuation date. Subscription, redemption or conversion requests received after the deadlines will be handled at the net asset value on the following Valuation Date (as described in the factsheets for each of the aforementioned Sub-funds).

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APPENDIX III - RISK PROFILE SPECIFIC TO INSURANCE-LINKED SECURITIES (ILS)

Investors are recommended to carefully evaluate the following specific risks linked to investing in the Sub-fund that invests in ILS.

The following risk description does not claim to be complete.

ILS General Risks

Risks linked to the type of investment: The portfolio will consist of the ILS traded on the P&C market and on the ILS market for primary and secondary life branches. These activities may be influenced, in many ways, by unforeseeable uncertainties on the financial markets, both for operations and fiscal/legal aspects. There is no guarantee that the impact of such uncertainties will have been correctly assessed, both for the Sub-fund asset value and for the influence these investments had on the risk profile of the Sub-fund. Many factors are difficult to evaluate and/or foresee because of their inherent nature, and may influence the investment results, and consequently, the Sub-fund performance. No guarantee or declaration is given stating that Sub-fund’s investment objectives have actually been reached or will be reached within a certain time.

Risks linked to competition on the market: the Sub-fund acts in competition with long-experienced operators in the insurance and reinsurance sectors as well as with other market players. Most of these players have much more financial, human and technological resources than the ones of the Sub-fund. Some of them have a better access to the market than the Sub-fund, as well as better and bigger platforms for carrying out transactions. There is no guarantee that the Sub-fund may have the same level of access to the market as its competitors.

Insurance risk: the Sub-fund invests in ILS containing an important percentage of insurance risk. The estimated intensity (loss amount) and frequency (historical data of occurrence) of the various insurance risks are based on a substantial quantity of information and data. There is no guarantee that the effective intensity/frequency of the insurance risk are aligned with the expectations based on historical data.

Confidence in company’s balance sheets: the long-term performance of the Sub-fund may depend on the solvency of many counterparties of the insurance sector the Sub-fund works with. Recent events have shown that the balance sheets of some insurance companies are not always a real representation of accounting, capital and risk positions. Sub-fund strategy depends on the integrity and correctness of the balance sheets of the ILS market players.

Risks linked to severe market disturbance: when severe market disturbance occurs, credit availability becomes a problem and some investments held by the Sub-fund may turn out to be illiquid. In such cases, the Sub-fund may face significant loss because of the need to liquidate assets at prices that could be far from the corresponding fair value. Therefore, the Sub-fund could become an operator with a risk/return profile being completely different from the one its original strategy was based on.

Risks linked to the possible positive correlation with equity and bond markets: ILS-related risk is mainly represented by insurance risks. The occurrence of insurance events is largely disconnected from the global equity and bond markets; as a result, an insurance risk portfolio may show a small correlation with investments in these asset categories. However, especially during market turbulence or severe disturbance periods or in credit squeeze situations, there is no guarantee that an investment in the Sub-fund may contribute to a global reduction of the portfolio correlation, especially because in such circumstances correlations may largely vary.

Risks linked to insurance law applicability: the United States’ regulation and the one of other jurisdictions contain a lato sensu definition of the activities that may constitute an insurance or a reinsurance. Definitions change over time. Therefore, Sub-fund authorities or courts may establish that ILS purchase or holding is part of the insurance or reinsurance activity. In that case and if the ILS holder was not duly authorised to act as supplier of insurance and reinsurance services, such holder may be subject to legal and statutory conditions.

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Although the Sub-fund evaluates the type of risk before investing in any ILS, there is no guarantee that the relevant authorities will not pursue unfavourable actions for the ILS market considering that ILS purchase or holding is part of the insurance or reinsurance activity.

ILS Specific Market Risks

Risk unpredictability: the type of risks included into the underlying events of an ILS is hard or even impossible to foresee. The most complex and sophisticated models are not able to foresee the occurrence of a natural disaster or one caused by humans. In order to estimate the ILS actuarial risk and to understand its impact on the risk/return profile of the Sub-fund portfolio, the Fund Management Company and the Investment Advisor rely, whenever possible, on third party suppliers specialised in developing and perfecting multi-country risk models, especially in the P&C sector. This allows the Fund Management Company and the Investment Advisor to better understand the risks and price fundamental components of the corresponding ILS. Such models contain a significant percentage of uncertainty and hypotheses and are often based on the likelihood of the relevant conditions.

Risk of non-regulated ILS: this type of ILS is not offered or traded on the stock exchanges. As a result, an investment in this type of ILS does not give the regulatory protections in force in such stock exchanges, or also foreseen by SEC or other regulatory bodies and supervisory authorities.

Risks linked to reduced market dimensions: the ILS market dimension is relatively reduced and this may create some capacity limits if the Sub-fund assets grow and if the ILS market share controlled by the Sub-fund becomes very important.

Risks linked to issue volume reduction: there is no guarantee that the ILS market dimension remains constant or increases over time. The risk of a volume reduction in ILS issues may cause the impossibility to reach performing levels of Sub-fund diversification, with significant potential loss in case of a catastrophic event.

Loss risk linked to disasters or other similar events: The Sub-fund invests in ILS whose return is linked to the occurrence of catastrophic events able to influence both coupon and capital of an ILS. The occurrence of such triggering event is unforeseeable by its nature and can happen at any time. Furthermore, some ILS can be subject to a reimbursement before maturity, when the occurrence of some events implies the compulsory reimbursement. Likewise, ILS can envisage extensions of the natural maturity. ILS being speculative instruments, the Sub-fund investors may lose their investments completely or in part.

ILS Strategic Risks

Price risk: ILS represent an asset category being complex to evaluate. Such complexity derives from the digital nature of their optionality, which makes it very hard to foresee the underlying loss function. In the normal course of activities, it is virtually impossible to see whether an ILS value is correctly determined or not. Although the models used for the ILS evaluation are becoming more and more complex and sophisticated, there is no guarantee that these models are able to seize the elements of substantially unforeseeable events. The lack of a liquid secondary market significantly contributes to the uncertainty over the ILS evaluation. Many operators that are actively working on the ILS market supply the price lists on a regular basis; however, this information must be considered as a mere indication. ILS fair value can be subject to significant variations.

Risks linked to the lack of liquidity: much of the Sub-fund assets may be illiquid and there can be a low market depth. As a result, the Sub-fund could find itself in difficulties when executing transactions with prices and selling/buying volumes aligned with the price lists. The differentials of bid/ask rate may be huge and executing orders may turn out to be difficult. Much of the Sub-fund assets may be represented by ILS without an active secondary market. Investors must then have a medium-long time horizon.

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Risk of price volatility: ILS price may be influenced by many unforeseeable factors, such as general economic conditions, insurance price cycles both in life and in general insurance, inflation rates, natural disasters and the ones due to humans, new scientific research and discoveries. For the moment, it is not clear whether these elements are correctly included in price and in the portfolio models used by the Sub-fund. Sub-fund performance may be influenced by a higher or lower volatility that can be assigned to these not completely foreseeable factors. The volatility variation may push or oblige the Sub-fund to liquidate part of its investments with a significant reduction compared to the fair value.

Risk of issuer’s limited resources: ILS issuers are often small cap companies with limited financial resources. There is no guarantee that these companies may be able to honour the corresponding liabilities and bonds or to pay coupons and/or capital to the ILS holder.

Rating quality: ILS are normally without or with low rating. ILS perception by the investors may be influenced by the low rating or its lack, with a negative effect on the corresponding prices.

Fiscal risk: although the Sub-fund invests its assets in ILS that are not subject to withholding tax, there is no guarantee that these ILS shall not be subject in the future to withholding tax or other taxes. In that case, the Sub-fund could not be able to recover such withholding tax, being therefore fees at the expenses of the Sub-fund.

Risk of portfolio concentration: the Sub-fund mainly invests in ILS and assets traded on the ILS market. The ILS market is very vulnerable to sudden disasters, being natural or due to the humans, which may trigger some significant variations in the Sub-fund ILS prices. Moreover, the portfolio may be overexposed to some types of danger or event that are able to increase the negative impact of such losses over the portfolio’s fair value, even if such losses or dangers do not occur.

Risk linked to the lack of diversification: despite diversification being a fundamental part of a portfolio construction process, the Sub-fund has the right to invest any percentage of its assets in any kind of ILS, in any region, market, as well as to be exposed to any strategy or issuer. The Sub-fund can hold an important part of its assets in these ILS, issuers, regions, markets or strategies that, at the sole discretion of the Fund Management Company, are considered to be the ones that offer the best investment opportunities for a specific risk level. Following the losses on these concentrated positions, there could be a significant loss for the Sub-fund.

Credit risk: even if most ILS are issued by fully guaranteed vehicle companies, there are some credit risks inside ILS. Where possible, we will consider the rating expressed by the main rating agencies, like S&P, Moody’s, Fitch, AM Best, during the decision-making and subscription process. Nevertheless, there is no guarantee that each ILS is given a specific rating and that the Fund Management Company is in the position to confirm that the assigned rating effectively corresponds to the actual credit rating and to the risk profile of the corresponding ILS.

Model risk: investment decisions are based on quantitative models, both internally developed and supplied by third parties. The Fund Management Company will do its best to build, update and keep these models. However, these models may be subject to the risk of loss of the capacity to foresee important events in order to evaluate the corresponding ILS performance. Furthermore, the results of the analysis carried out on the basis of third-party models may not be considered to be facts, projections, forecasts of future losses or an estimate of future loss probability. As a result, the Fund Management Company shall rely on these models only as indication or proxy of the Sub-fund return. Real experience is likely to differ to a great extent from the expectations formulated on the basis of such models. The likeliness and extent of the losses generated by models developed in-house and by third parties are not a forecast of future catastrophic events. The premises, the methodology and the information will be subject to constant revision. As a result, corrections can substantially modify the estimates of current losses generated by the above-mentioned models.

Risk linked to limited hedging possibilities: in financial theory and in financial markets’ practice, hedging is aimed at reducing a risk position by taking an opposed position. This is the reason why hedging requires the availability of a security, an index or a basket of assets to be used to hedge the positions that are already in the portfolio. Such a hedging turns out not to be possible for some ILS, because there could not be “negatively linked” risks. For instance, it is not possible to compensate exposure to hail with exposure to hurricanes. The

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absence of “negatively linked” risks to be used for hedging means that we can only reduce an ILS investment risk through diversification. When feasible and possible, the Fund Management Company shall perform hedging transactions in order to reduce and/or control risks. The hedging strategy adopted will reduce the Sub-fund performance. Furthermore, there is no guarantee that the hedging will be effective in reducing and/or controlling risks; this could instead increase the global risk profile of the portfolio. Finally, the success of a hedging strategy does not only depend on its effective application, in a quick and cost-effective way, but also on the judgement precision regarding the positions to be handled.

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SECTION B RESERVED TO INSTITUTIONAL INVESTORS

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APPENDIX IV: SUB-FUND FACTSHEETS

The name of each Sub-fund is preceded by "AZ Fund 1".

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“AZ Allocation – Global Income” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide a regular income and capital growth in the medium/long term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of shares and other equity-related securities, generating high cash flows and a high level of dividend yield, as well as debt securities issued worldwide. The Sub-fund actively manages the allocation between equities and debt securities, based on the expected risk and return between these two asset classes. The bottom-up selection procedure for shares and other equity-related securities will mainly focus on companies with an attractive cash flow. The remaining portion of the portfolio will be invested in debt securities with an attractive yield to maturity in order to enhance the profitability of the Sub-fund. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 20% and 70% of its net assets in shares and other equity-related securities issued by companies worldwide. The Sub-fund may also invest:




- up to 30% of its net assets in convertible bonds. The Sub-fund may also invest:



- futures, options and financial contracts for differences (CFDs) on shares and equity-related securities, equity indices, including, among others, E-mini S&P500 Future, Eurostoxx 50 Future and Eurostoxx 50 Index Dividend Futures;

- futures, options and CFDs on debt securities and ETFs investing in debt securities, including, among others, Bund Future, BTP Future and US10YR Note Future.

The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type).

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rate risk A-INSTITUTIONAL EURO (ACC)

EUR NON HEDGED No

A-INSTITUTIONAL EURO (DIS)

EUR NON HEDGED No

A-INSTITUTIONAL USD (ACC)


A-INSTITUTIONAL USD (DIS)


Unit class: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) exclusively for institutional investors.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) including any subscription fees and costs (please see Appendix V which is specific for institutional investors).


Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units may only be subscribed in a single solution. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors.

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Distribution policy: the Sub-fund shall distribute revenue to holders of class A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS) Units and shall reinvest revenue of holders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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"Global Unconstrained Bond Fund" factsheet61 General Information

Investment policy: the Sub-fund aims to generate a combination of current recurring earnings and capital revaluation in the medium-long term. For this purpose, the Sub-fund invests – with no restrictions in terms of geographical area and/or sector – mainly (i.e. at least two thirds of the Sub-fund’s net assets) in bond financial instruments of corporate issuers with credit ratings usually no lower than investment grade. The Sub-fund may also invest in government bonds, money market instruments, units of Undertakings for collective investments in transferable securities and/or of other Collective investment undertakings oriented towards bond and/or monetary instruments as well as bank deposits. Up to a maximum of 15% of the Sub-fund’s net assets may be invested in equity securities. The aforementioned instruments may be denominated in any currency. The average duration of the financial instruments in the portfolio will normally be between -10 and +10 years. The Sub-fund may hold liquid assets. For the purposes of effective portfolio management, the Sub-fund may, to the extent permitted by law, use financial instruments and techniques authorised by regulations and, in particular, use hedging techniques against exchange rate risks. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit and other risks) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently suspend subscriptions (including conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. Investors are informed of the decision by means of special notice. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



EUR NON HEDGED No


EUR NON HEDGED No



61 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund AZ Bond – Global Macro Bond.

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Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) exclusively for institutional investors.



Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units may only be subscribed in a single solution.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. An additional variable management fee is payable for the Units exclusively for institutional investors in the following instances: • in case of over-performance, i.e., if the change in Unit value within the reference timeframe (calendar

year) exceeds the change in the reference index below, within the same timeframe (calendar year). It is calculated on the last business day of the calendar year before the reference timeframe (calendar year).

• if Unit value calculated at the last business day of the current calendar year is higher than the Unit value calculated at the last business day of the previous calendar year.

When both the above conditions are met, the additional fee will be 20% of said over-performance, multiplied by the number of existing Units at the Valuation Date the calculation of the fee refers to. This additional fee is withdrawn every year from the Sub-fund assets, on the first business day of the calendar year following the reference period. The additional variable management fee is applied daily with the provision of the day to which the calculation refers being accrued as above indicated. Every day, the provision of the previous day will be credited and, where appropriate, the provision of the day to which the calculation refers will be debited so as to calculate the total value of the Sub-fund.

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Reference index: 100% EURIBOR 3 months + 200bps. Distribution policy: the Sub-fund shall distribute revenue to holders of class A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS) Units and shall reinvest revenue of holders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


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“Active Selection” Sub-fund factsheet General Information

Investment policy: the Sub-fund aims for a positive absolute return using a long/short equity strategy. The investment policy targets a portfolio geared mainly towards financial instruments listed on European regulated equity markets and/or correlated to equity securities (convertible bonds, warrants and derivative financial instruments). Short positions will be taken exclusively via derivative financial instruments.

The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. In any event the arithmetical sum of the values of the long and short positions in financial instruments and derivatives in which the Sub-fund’s assets are invested may not exceed 200% of the same Sub-fund’s total assets. The Sub-fund may also invest in bond and money market instruments and hold liquid assets. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. Given the investment characteristics of the Sub-fund, the Company reserves the right to temporarily or permanently suspend subscriptions (including those deriving from conversion) in the event that the net assets of the Sub-fund reach a level, established by the Board of Directors, that could compromise or impair the efficiency of the Sub-fund’s management. Investors are informed of the decision by means of special notice. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 200%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR




EUR NON HEDGED No


EUR NON HEDGED No








449


Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed).

Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee is payable for the Units exclusively for institutional investors in the following instances: • in case of over-performance, i.e., if the change in Unit value within the reference timeframe (calendar




Reference index: 70% EURIBOR 3 MONTHS + 30% STOXX 600 TOTAL RETURN NET


Distribution policy: the Sub-fund shall distribute revenue to holders of class A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS) Units and shall reinvest revenue of holders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units. Revenue will be distributed quarterly, according to

450

the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


451

“AZ Equity – Global Growth” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund aims to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies worldwide, using a bottom-up selection procedure that will focus on companies with a higher than average potential growth rate. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets, directly or indirectly in shares and other equity-related securities of companies worldwide. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices. The Sub-fund may also invest:

- up to 30% of its net assets in shares and other equity-related securities issued by companies with their head office and/or which carry out a predominant part of their economic activities in emerging countries;



The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and other equity-related securities, equity indices, including, among others, E-mini S&P500 Future, NASDAQ 100 E-Mini futures and Eurostoxx 50 Future. The Sub-fund will not invest in corporate debt securities, asset-backed securities (ABS) and mortgage-backed securities (MBS), contingent convertible bonds (CoCo bonds) or securities that are in default or in difficulty at the time of purchase.

CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities.

In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage effect lower than 200%, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



EUR NON HEDGED No

452



Unit class: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL USD (ACC) exclusively for institutional investors.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) including any subscription fees and costs (please see Appendix V which is specific for institutional investors).


Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units may only be subscribed in a single solution.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.


An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and

453

become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach.


454

"Core Brands" Sub-fund factsheet General Information

Investment policy: the Sub-fund aims for a positive absolute return using a long/short equity strategy. The investment policy aims at a portfolio geared mainly towards listed financial instruments and/or correlated to equity securities (convertible bonds, warrants and derivative financial instruments). From a geographical standpoint, the portfolio shall mainly consist of European equity securities, but the Management Company reserves the possibility to invest in world-class equity securities. With regard to the investment sectors, the portfolio will be predominantly oriented to securities related to consumer goods (durable and non-durable goods), media, business services and distribution. The Sub-fund will invest primarily in the consumer goods sector (less cyclical) and in the consumer discretionary sector (more cyclical). Short positions will be taken exclusively on derivative financial instruments. The financial instruments shall be denominated in all currencies. Net exposure of the Sub-fund will mainly range between -20% and 70%. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. In any event the arithmetical sum of the values of the long and short positions in financial instruments and other derivative financial instruments in which the Sub-fund’s assets are invested may not exceed 200% of the same Sub-fund’s net assets. The Sub-fund may also invest in bond and money market instruments and hold liquid assets. The Sub-fund is not subject to any restrictions in terms of issuer’s rating. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 150%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



EUR NON HEDGED No


EUR NON HEDGED No






455


Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units may only be subscribed in a single solution.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee is payable for the Units exclusively for institutional investors in the following instances: • in case of over-performance, i.e., if the change in Unit value within the reference timeframe (calendar




Reference index: 100% Euribor 3 months + 100Bps


456



457

“Hybrid Bonds” factsheet General Information

Investment policy: with a view to enhancing the value of its assets in the medium/long term, the Sub-fund shall invest in debt instruments (fixed and floating rate, index-linked, subordinated, convertible and cum-warrant). For this reason, the Sub-fund shall normally invest mainly in corporate bonds denominated in any currency of the G7 countries. In particular, the Sub-fund shall invest in hybrid and/or perpetual financial instruments. Exposure to exchange rate risk shall be managed in a dynamic and flexible manner. Bonds held by each Sub-fund shall normally have a high credit rating (investment grade). The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors or duration. The Sub-fund may also hold liquid assets and money market instruments. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund may also use derivative financial instruments not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks, etc.) and (iii) for effective management purposes but also for any investment purpose. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



EUR NON HEDGED No


EUR NON HEDGED No





A-INSTITUTIONAL GBP (ACC)

GBP HEDGED Hedging against EUR

A-INSTITUTIONAL GBP (DIS)

GBP HEDGED Hedging against EUR

Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL GBP (ACC) and A-INSTITUTIONAL GBP (DIS) exclusively for institutional investors.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS)

458

• USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) • GBP 175,000 for A-INSTITUTIONAL GBP (ACC) and A-INSTITUTIONAL GBP (DIS) Units including any subscription fees and costs (please see Appendix V which is specific for institutional investors).

Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL GBP (ACC) and A-INSTITUTIONAL GBP (DIS) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL GBP (ACC) and A-INSTITUTIONAL GBP (DIS) Units may only be subscribed in a single solution.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5,000 (or USD 5,000 or GBP 3,500 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. An additional variable management fee is payable for the Units exclusively for institutional investors in the following instances: • in case of over-performance, i.e., if the change in Unit value within the reference timeframe (calendar




Reference index: 100% Iboxx in Euro non financial subordinated total return index.

459

Distribution policy: the Sub-fund shall distribute revenue to holders of class A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL GBP (DIS) Units and shall reinvest revenue of holders of class A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL GBP (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


460

“AZ Alternative – Arbitrage” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium-term capital growth. INVESTMENT STRATEGY: The Sub-fund is actively managed and aims for a positive absolute return objective based on a "merger arbitrage" strategy that provides for exposure to companies subject to extraordinary "corporate finance" transactions (mainly mergers and acquisitions but also divisions and other corporate reorganisations) already announced to the market, and transactions not yet completed, but whose possible completion is already known by the markets (through the press and/or specialised economic information sources). Usually, in merger/acquisition transactions, the market price of the "target company" is lower than the price offered by the "purchasing company" (the "premium"). If the transaction is successfully completed, the Sub-fund may earn a profit on the "premium". If the transaction fails, the Sub-fund may suffer a loss. The Sub-fund focuses on the following purchases:

- in the case of take-over bids with 100% liquidity, the purchasing company is committed to acquire the securities of the target company at a certain price (the “price offer”) in cash. Until the transaction is completed, the shares of the "target company" are traded below the price offer. In this case, the Sub-fund takes a long exposure to the shares of the target company, and may make a profit if the transaction is successfully completed;

- in the case of takeover bids with 100% shares, the purchasing company undertakes to acquire the target company's shares by exchanging its own shares for the target company's shares at a pre-defined ratio (the "exchange ratio"). In this case the Sub-fund takes a short exposure to the shares of the purchasing company and a long exposure to the shares of the target company in the same proportion as the exchange ratio and may make a profit if the transactions are successfully carried out;

- in the case of takeover bids with share and/or liquidity exchange, the purchasing company undertakes to acquire the securities of the "target company" by exchanging its own shares plus a certain amount in cash for the shares of the target company at a predefined ratio (the "exchange ratio"). In this case the Sub-fund takes a short exposure to the shares of the purchasing company and a long exposure to the shares of the target company in the same proportion as the exchange ratio and may make a profit if the transactions are successfully carried out.

INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests directly or indirectly in long and/or short positions in shares and other equity-related securities worldwide subject to extraordinary corporate finance transactions, as described above. Indirect exposure to this type of asset will be achieved through the use of derivative financial instruments as detailed in more detail below. The Sub-fund aims to use only a portion of its assets to achieve the desired exposure to the above-mentioned assets through the use of derivative financial instruments. As a result, the remaining portion of the Sub-fund’s assets may be invested in low volatility assets to provide an additional long-term total return such as debt securities, money market instruments and cash, as more fully described below. The Sub-fund may invest:


- up to 10% of its net assets in debt securities with a sub-investment grade rating; - up to 10% of its net assets in units of UCITS and/or other UCIs with an investment strategy consistent

with the Sub-fund’s investment policy; - up to 20% of its net assets in shares and other equity-related securities of companies that are not

involved in extraordinary corporate finance transactions; - up to 10% of its net assets in shares and other equity-related securities of companies in emerging

countries involved in extraordinary corporate finance transactions;

461


The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and equity-related securities. The Sub-fund may also use, for hedging purposes and up to a maximum net exposure of 20% of its assets, futures on debt securities, including, among others, Euro-Bobl Future, Euro Schatz Future, Short term Euro-BTP Future, 5-Year US Treasury Note Futures and 2-Year US Treasury Note Futures. The Sub-fund may also invest in total return swap contracts. The gross exposure to total return swap contracts will not exceed 30% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts are the indices of arbitrage strategies (such as Goldman Sachs Global Merger Arbitrage Custom Basket (GSCBMAZ)). The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. The net exposure to currencies other than the Sub-fund’s reference currency is limited to 20% In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 300%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraph 23 of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


exchange rate risk


USD NON HEDGED No


USD NON HEDGED No

A-INSTITUTIONAL EURO (ACC)




462





Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed.

463

“Reference index” means: • 3 months Libor USD + 0.5% for NON HEDGED Units • 3 months Libor USD + 0.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS) Units and shall reinvest revenue of Unitholders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


464

"Munis Yield" factsheet General Information

Investment policy: with a view to enhancing the value of its assets in the medium/long term, the Sub-fund shall invest in bond financial instruments (fixed and floating rate, zero coupon, convertible and CPI linked). In this regard, the Sub-fund will normally invest primarily in US utility and/or US treasury bonds. Exposure to exchange rate risk shall be managed in a dynamic and flexible manner. Bonds held by the Sub-fund shall generally have a high rating (investment grade). The Sub-fund is not subject to any restrictions in terms of sectors or duration. The Sub-fund may also hold liquid assets and money market instruments to an ancillary extent. The reference to a specific rating made in this factsheet shall be applied only upon purchase of the mentioned transferable security. Moreover, even if the Manager must generally respect this specific rating, it can deviate from this general rule if that is in the interest of the unitholders or under exceptional market conditions. The Sub-fund may also use derivative financial instruments only for hedging purposes (against interest rate, exchange rate, credit and other risks). The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR

Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated Sub-fund Unit Reference



EUR NON HEDGED No


EUR NON HEDGED No


USD NON HEDGED No


USD NON HEDGED No


Minimum initial subscription amount:

the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) including any subscription fees and costs (please see Appendix V which is specific for institutional investors).


Subscriptions and Redemptions:

465

For A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units may only be subscribed in a single solution. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee is payable for the Units exclusively for institutional investors in the following instances: • in case of over-performance, i.e., if the change in Unit value within the reference timeframe (calendar




Reference index: 100% S&P Municipal Bond Intermediate Index TR (ticker: SAPIINT Index) The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.



466

467

"Real Plus" factsheet General Information

INVESTMENT POLICY: with a view to generating a positive return on a calendar year basis (from 1 January to 31 December), the Sub-fund shall mainly invest in short-term Brazilian government bonds and money market instruments, both of these having fixed and floating interest rates. The Sub-fund may invest to an accessory extent in other debt instruments within the limits set by law and the restrictions on investments. Securities will mainly be in Brazilian Real (BRL) and residually in other currencies. Securities shall be mainly traded on the Brazilian market and to a residual extent on other regulated markets. The Sub-fund is not subject to any restrictions in terms of issuer’s rating since the Sub-fund shall mainly invest in investment grade securities. However, it is not excluded that the investment rating may deteriorate, due to political and economic events. The Management Company may, however, also invest in a dynamic and flexible manner in shares or equity-related instruments linked to Brazilian issuers. Furthermore, the Sub-fund may hold liquid assets up to 100% of its net assets. The net exposure to equity markets of equity or equity-related instruments deriving from hedging techniques shall not exceed 10% of the Sub-fund net assets. Equity exposure will be basically hedged by future contracts to limit the volatility deriving from the Brazilian market equity fluctuations. The Sub-fund will use hedging techniques against stock exchange price fluctuations to the extent permitted by law and via techniques authorised by the regulations. As the Sub-fund is managed to generate a positive return on a calendar year basis, the management style is dynamic and flexible, with risk control partly based on the performance achieved over the period of time considered. The investment policy is based more on stock-picking and a strategy aimed at identifying the best moment to buy/sell specific portfolio securities than on asset allocation. This management policy may also be characterised by frequent changes in the portfolio. The Sub-fund may also use derivative financial instruments – not only (i) on the above-mentioned instruments for direct investment purposes, (ii) for hedging purposes (against market, securities, interest rate, exchange rate, credit risks etc.). The Company does not usually hedge exchange rate risks. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The amount of the expected leverage, calculated on the total of all derivative instruments' notional amounts would be 200%. EXCHANGE RATE RISK: there may also be a risk associated with the investment of a considerable portion of assets in currencies other than the Euro. GEOPOLITICAL RISK: the investment income may be affected by the risks due to financial and geopolitical situation in the countries where investments are made. EMERGING COUNTRIES' RISK: substantial. Base currency of the Sub-fund: EUR

Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated Sub-fund Unit Reference



EUR NON HEDGED No

468


EUR NON HEDGED No


USD NON HEDGED No


USD NON HEDGED No

• Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) exclusively for institutional investors.



Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Manager: AZ QUEST INVESTIMENTOS LTDA has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZ QUEST INVESTIMENTOS LTDA was established as a limited liability company under Brazilian law, having its registered office at Rua Leopoldo Couto de Magalhaes Junior, no 758 – cj. 152 Itaim Bibi – CEP 04542-000, São Paulo, Brazil.


An additional variable management fee is payable for the Units exclusively for institutional investors in the following instances: • in case of over-performance, i.e., if the change in Unit value within the reference timeframe (calendar



When both the above conditions are met, the additional fee will be 10% of said over-performance, multiplied by the number of existing Units at the Valuation Date the calculation of the fee refers to.

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This additional fee is withdrawn every year from the Sub-fund assets, on the first business day of the calendar year following the reference period. The additional variable management fee is applied daily with the provision of the day to which the calculation refers being accrued as above indicated. Every day, the provision of the previous day will be credited and, where appropriate, the provision of the day to which the calculation refers will be debited so as to calculate the total value of the Sub-fund.

Reference index: 100% [CDI + exchange rate fluctuations of EUR/REAL]

The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.



http://context.reverso.net/traduzione/francese-italiano/variation+du+taux+de+change

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“Equity Options” factsheet62 General Information

Investment policy: the Sub-fund shall invest in equity or equity-related securities (particularly convertible bonds, warrants and investment certificates), in bonds and money market instruments with a view to enhancing the value of its assets in the medium/long term. Global exposure to equity markets – including exposure deriving from the use of derivative financial instruments – will range between 20% and 70% of the Sub-fund net assets and shall be mainly realised through options on stock market indexes, including sector indexes. The Sub-fund may also invest in bond securities and/or money market instruments issued by governments, government agencies, supranational issuers and/or corporate issuers, mainly denominated in Euro and issued in countries belonging to the white list. The Sub-fund is not subject to any restrictions in terms of duration or issuer’s rating since the Sub-fund shall mainly invest in investment grade securities. Furthermore, the Sub-fund may hold liquid assets. Under particular market conditions, the reference to a specific rating made in this factsheet could be applied only upon purchase of the mentioned security. Moreover, even if the Manager will generally respect this specific rating, it can deviate from this general rule if that is in the interest of the Unitholders or under exceptional market conditions. The Sub-fund may also use derivative financial instruments – not only on the above-mentioned instruments for direct investment purposes, but also for hedging purposes (against market, securities, interest rate, exchange rate, credit risks etc.). For the purposes of effective portfolio management, derivative financial instruments can be used to a residual extent. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. The Sub-fund will aim at maintaining a leverage lower than 300%, calculated on the total of all derivative instruments' notional amounts. The gross exposure to total return swap contracts will not exceed 20% of the net asset value of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 20% of the net asset value of the Sub-fund. The underlying strategies of total return swap contracts or financial instruments having similar characteristics are "long only" or "long/short" strategies on financial indices with an exposure to equity Base currency of the Sub-fund: EUR

Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated




EUR NON HEDGED No

Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC) exclusively for institutional investors.

62 As of April 3rd 2020, the Sub-Fund will be merged into the Sub-Fund Convertible Bond.

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Minimum initial subscription amount: the minimum initial subscription amount is EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) including any subscription fees and costs (please see Appendix V which is specific for institutional investors).


Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC) Units may only be subscribed in a single solution. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5,000. Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors.


For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets.

An additional variable management fee is payable for the Units exclusively for institutional investors in the following instances: • in case of over-performance, i.e., if the change in Unit value within the reference timeframe (calendar




Reference index: 100% MSCI Daily Net Total Return World Euro Index

Distribution policy: the Sub-fund shall reinvest the revenue for holders of class A-INSTITUTIONAL EURO (ACC) units.


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Investment policy: the Sub-fund pursues the objective of an increase in capital value, mainly investing in the Italian company system, with a medium/long-term perspective. Until December 31, 2018, the Sub-fund qualified as a qualified investment for the creation of long-term individual savings plans under Italian law no. 232/16 (known as “piani di risparmio a lungo termine “). Unit Holders who have invested before December 31, 2018 and who have continued to invest since then, shall still enjoy tax advantages indicated in this law. The investment must be made in each calendar year as follows: at least 70% of the Sub-fund's net assets in shares, bonds, units of UCITS and/or other UCIs (PIR), whether or not traded on regulated markets or multilateral trading platforms, issued by or concluded with undertakings which do other business than real property, resident in the territory of the Italian State, in accordance with article 73 of the Italian Law on income taxes (Testo unico delle imposte sui redditi), under the decree of the President of the Italian Republic no. 917 of 22 December 1986 or in the Member States of the European Union or in the States forming part of the agreement on the European Economic Area with permanent establishments in Italy. The Sub-fund may invest up to 5% of its net assets in contingent convertible bonds. Equity investments may represent up to 70% of the Sub-fund's net assets. The Sub-fund must be invested for at least 21% of its net assets in financial instruments of companies other than those included in the FTSE MIB index of the Italian Stock Exchange or equivalent indices of other regulated markets. Qualified investments also include units of UCITS and/or other UCIs of issuers established on the Italian territory or in another EU Member State or in the States forming part of the agreement on the European Economic Area, which in turn will invest at least 70% of the portfolio in these financial instruments referred to in the second paragraph above. The Sub-fund may invest no more than 10% of its net assets in units of UCITS and/or of other UCIs. Up to 30% of the Sub-fund's net assets may be invested in financial instruments other than those referred to above. No more than 10% of the portfolio may be invested in a single financial instrument of the same issuer or concluded with the same counterparty or with another company of the same group as the issuer or the counterparty or in deposits and current accounts. No investment may be made in financial instruments issued by or concluded with residents in countries or territories other than those which permit an adequate exchange of information. The Sub-fund may also use derivative financial instruments for risk hedging purposes only (against market, equity, interest rate, exchange rate, credit and other risks). For the purposes of effective portfolio management, derivative financial instruments can be used to an accessory extent. The Sub-fund will aim at maintaining a leverage lower than 100%, calculated on the total of all derivative instruments' notional amounts. Base currency of the Sub-fund: EUR





EUR NON HEDGED No

A-INSTITUTIONAL EURO EUR NON HEDGED No

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(DIS) Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) exclusively for institutional investors.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) including any subscription fees and costs (please see Appendix V which is specific for institutional investors).


Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) Units may only be subscribed in a single solution. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5,000. Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Manager: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Manager for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. For this Sub-fund also a service fee is applicable and due to the Management Company, with an annual maximum equal to 0.15% of Sub-fund net assets. An additional variable management fee is payable for the Units exclusively for institutional investors in the following instances: • in case of over-performance, i.e., if the change in Unit value within the reference timeframe (calendar



When both the above conditions are met, the additional fee will be 10% of said over-performance, multiplied by the number of existing Units at the Valuation Date the calculation of the fee refers to. This additional fee is withdrawn every year from the Sub-fund assets, on the first business day of the calendar year following the reference period. The additional variable management fee is applied daily with the provision of the day to which the calculation refers being accrued as above indicated.

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Every day, the provision of the previous day will be credited and, where appropriate, the provision of the day to which the calculation refers will be debited so as to calculate the total value of the Sub-fund.

Reference index: 30% FTSI MIB + 40% FTSI ITALIAN MID CAP INDEX + 30% FTSI MTS Eurozone Government Bond 3-5Y The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to holders of class A- INSTITUTIONAL EURO (DIS) units and shall reinvest revenue of holders of the same class A-INSTITUTIONAL EURO (ACC) units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


476

"AZ Alternative - Smart Risk Premia" factsheet

General Information

OBJECTIVE AND INVESTMENT POLICY: The investment objective of the Sub-fund is to achieve medium to long-term capital growth by generating positive returns with a low correlation to traditional equity portfolios.

To achieve its investment objective, the Sub-fund will implement a "Long/Short Equity Market Neutral" systematic investment strategy aimed at capturing premiums linked to multiple investment styles in equity markets while neutralising exposure to these equity markets.

The universe of investment styles includes, among other things:

- Momentum: refers to assets with positive risk-adjusted returns over an extended period; - Carry: refers to assets with increased growth and high return potential; - Value: refers to assets that are undervalued in relation to their accounting, economic and financial

fundamentals; - Size: refers to assets with a high market capitalisation; - Quality: refers to assets with strong accounting, economic and financial data; - Low Risk: refers to assets with low volatility or beta. Each investment style may be long or short, depending on the risk premium model. By identifying the possibility of extracting a positive premium from an investment style, the Sub-fund will take long positions on assets having the characteristics of the investment styles described above and short positions in the reference market (thus having a net exposure to the equity market close to zero). If the possibility of having a negative premium linked to an investment style is identified, the Sub-fund will take short positions on assets having the characteristics of the investment styles described above and long positions in the reference market (thus always having a net exposure to the equity market close to zero). The Sub-fund invests at least 60% of its net assets, directly or indirectly through the use of derivative financial instruments, in shares and other equity-related securities issued by companies having their registered office in an OECD country or which are listed or traded on a regulated market in an OECD country. In circumstances where market conditions do not allow the Company to identify sufficient opportunities to capture risk premiums as described above (for example if the risk premium model gives a neutral signal), the Sub-fund may, on an ancillary basis, invest up to 40% of its net assets in: - investment grade debt securities issued by companies having their registered office in an OECD country

or which are listed or traded on a regulated market in an OECD country; - investment grade debt securities issued by governments or government authorities belonging to an OECD

country or which are listed or traded on a regulated market in an OECD country; - units of UCITS and/or other UCIs classified as equity, bond or money market type; - money market instruments issued by investment grade-rated entities; - cash. The Sub-fund may not invest more than 10% of its net assets in units of UCITS and/or of other UCIs classified as equity, bond or money market type. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds, or defaulted securities, or those experiencing any difficulty at the time of purchase. The Sub-fund uses derivative financial instruments for investment purposes in order to implement its investment policy and to hedge risks. The derivative financial instruments mainly used are as follows:

477

- futures on equity indices, including in particular the long and short indices Russell 1000 Future and Eurostoxx 50 Future to maintain an overall net exposure to equities close to zero (so-called Market Neutral approach) and to take specific exposure to premiums linked to investment styles;

- futures on premium indices linked to investment styles in equity markets, including, inter alia, the long and short indices iSTOXX EU MOMENTUM, iSTOXX EU CARRY, iSTOXX EU QUALITY, iSTOXX EU SIZE, iSTOXX VALUE and iSTOXX EU LOW RISK, in accordance with the investment strategy of the Sub-fund;

- futures on bonds or interest rates including long and short positions in order to achieve the required portfolio duration;

- financial contracts for differences (CFDs) on equity indices and/or equities and/or ETFs in order to take specific exposure to premiums linked to investment styles;

- options on equity indices and/or bond indices in order to control the overall portfolio risk with a specific focus on maturity and market conditions.

The base currency of the Sub-fund is the Euro (EUR) and the Sub-fund does not intend to hedge the currency risk against other currencies of the investments in its portfolio. The Sub-fund may use currency futures, currency swaps and currency options for investment purposes in order to dynamically adjust the overall currency exposure of the portfolio according to market opportunities. In addition, the Sub-fund will use currency futures, currency swaps and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED class) The Sub-fund tends to maintain a leverage lower than 400%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: In addition to the risk factors set out in the general section of the Prospectus in section III "Risk Factors" of chapter 3, the following specific risk factors are associated with the Sub-fund's investments: - Leverage risks: the Sub-fund may achieve a certain degree of leverage by using derivative financial


- Risks related to investment style factors: factors specific to an investment style employed by the Manager may not produce the best results in the medium and long term, and may result in higher volatility.

- Risks linked to strategies relying on long/short positions: this kind of strategy seeks to generate capital gains by establishing long and short positions, by resorting to derivative financial instruments, by buying securities considered to be undervalued and selling securities deemed to be overvalued so as to generate a return and reduce the market risk in general. These strategies shall only be successful if the market ultimately acknowledges this undervaluation or overvaluation in the price of the security, which will not necessarily be the case, or may only take place over longer periods of time. These strategies may result in heavy losses.

Base currency of the Sub-fund: EUR




A-INSTITUTIONAL EURO (ACC) EUR NON HEDGED No A- INSTITUTIONAL USD (ACC) USD HEDGED Hedging against EUR Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL USD (ACC) exclusively for institutional investors.

478

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) including any subscription fees and costs (please see Appendix V which is specific for institutional investors). Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units may only be subscribed in a single solution.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Euribor + 1.5% for NON HEDGED Units • 3 months Euribor + 1.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous

479

Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. This additional variable management fees will apply to the part of assets not represented by Undertakings for Collective Investments in Transferable Securities and/or UCIs belonging to the Azimut Group. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.



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"AZ Bond - Sustainable Hybrid" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to provide a regular income and capital growth in the short/medium term. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities issued by companies around the world that meet ESG criteria. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests primarily in hybrid/subordinated and/or perpetual bonds, issued by both financial and non-financial institutions. At least 70% of the Sub-fund’s net assets are invested in debt securities whose issuers meet ESG ("Environmental, Social & Governance") criteria:

- the environmental criterion takes into account how a company achieves its performance while ensuring environmental protection;

- the social criterion takes into account how relationships between employees, suppliers, customers and the communities in which they operate are managed;

- the governance criterion takes into account the company's management, executive compensation, audits, internal controls and shareholders' rights.

The Sub-fund invests between 75% and 100% of its net assets in debt securities issued by companies that have their head office in developed countries. The Sub-fund may invest up to 25% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of developed countries and/or in debt securities of issuers located in emerging countries. At least 60% of the Sub-fund’s net assets are invested in debt securities rated BB+ or better at the time of purchase. The Sub-fund may invest up to 20% of its net assets in contingent convertible bonds (Coco bonds). The Sub-fund may also invest:

- up to 20% of its net assets in money market instruments; - up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 10% of its net assets in cash.

The Sub-fund invests no more than 5% of its net assets in shares and other equity-related securities other than those resulting from the conversion of debt securities. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates and debt securities including, among others, Bund Future, Euro BOBL Future, BTP Future, Short term Euro-BTP futures and US10YR Note Future. The Sub-fund may also use credit default swaps (CDS) to manage the overall credit risk of the portfolio, and may invest up to 20% of its net assets in CDS for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty at the time of purchase. ESG POLICY: The ESG criteria are taken into account at the time of acquisition of the shares, and consist of a list of ESG topics analysed according to a sustainable development approach carried out by the Investment

481

Advisor. The ESG criteria are binding and apply on a continuous basis to corporate bonds (including bonds issued by financial and non-financial institutions) and bonds issued by governments. For corporate bonds, the ESG analysis is based on exclusion criteria for issuers that have a certain level of exposure to, or are related to, certain sectors including, among others, nuclear power, chlorine-based chemicals, agrochemicals, genetic engineering, airlines, oil and mining, coal mining and hydro fracturing. The Investment Advisor also intends to exclude issuers of securities that may have been exposed to issues related to human rights, pornography, gambling, armaments or tobacco. With regard to government bonds, the Investment Advisor intends to exclude countries exposed to the death penalty, human rights, peace and security issues. The governance of issuing companies is also analysed through their strategy (development of the business model and their target markets and products) and management (corporate governance, management systems and communication/transparency) and the Investment Advisor considers corruption as an exclusion criterion. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 12) and 25) of section III, chapter 3, of this Prospectus. BASE CURRENCY OF THE SUB-FUND: EUR REFERENCE CURRENCY: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



EUR NON HEDGED No

A-INSTITUTIONAL EURO (DIS) EUR NON HEDGED No A-INSTITUTIONAL USD (ACC) USD HEDGED Hedging against EUR A-INSTITUTIONAL USD (DIS) USD HEDGED Hedging against EUR Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) exclusively for institutional investors.


482


Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: based on an agreement the company Vontobel Asset Management AG. has been appointed Investment Advisor for the Sub-fund. Vontobel Asset Management AG is a Limited Company established under Swiss law. Its registered office is at Gotthardstrasse 43, 8022 Zurich, Switzerland. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



483

“Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.

Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS) Units and shall reinvest revenue of Unitholders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


484

"AZ Equity – Brazil Trend" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies that have their head office or conduct a predominant part of their economic activities in Brazil, focusing on those companies that, in the opinion of the Manager, are undervalued. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets in shares and other equity-related securities issued by companies that have their head office in Brazil or that carry out a predominant part of their economic activities in Brazil. The Sub-fund may also invest:

- up to 20% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of Brazil;


The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and equity-related securities and/or equity indices, including, among others, Ibovespa Futures Contract. The Sub-fund will not invest in debt securities, asset-backed securities (ABS) and mortgage-backed securities (MBS), contingent convertible bonds (CoCo bonds) or securities that are in default or in difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: USD REFERENCE CURRENCY: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


exchange rate risk A-INSTITUTIONAL EURO (ACC) EUR NON HEDGED No A- INSTITUTIONAL USD (ACC) USD NON HEDGED No Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL USD (ACC) exclusively for institutional investors.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC)

485

• USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) including any subscription fees and costs (please see Appendix V which is specific for institutional investors). Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units may only be subscribed in a single solution.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. MANAGER: AZ QUEST INVESTIMENTOS LTDA has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZ QUEST INVESTIMENTOS LTDA was established as a limited liability company under Brazilian law, having its registered office in São Paulo, Brazil, Rua Leopoldo Couto de Magalhaes Junior, no 758 – cj. 152 Itaim Bibi – CEP 04542-000.

Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous

486

Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company.


Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.01% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

487

"AZ Equity - Global ESG" factsheet General Information

OBJECTIVE AND INVESTMENT POLICY: The investment objective of the Sub-fund is to achieve medium to long-term capital growth by applying environmental, social and governance criteria (ESG). The Sub-fund invests at least 80% of its net assets in units of UCITS and/or other UCIs that meet ESG criteria, such as sustainable, socially responsible and/or ethical investment criteria. The target UCITS and/or other UCIs invest at least 70% of their net assets in shares and other equity-related securities issued by companies worldwide, including emerging countries. In circumstances where market conditions do not allow sufficient investments with an attractive return potential and risk profile to be identified, the Sub-fund may invest up to 20% of its net assets in money market instruments and cash. The Sub-fund does not invest directly in equities or debt securities. The Sub-fund uses derivative financial instruments for investment purposes in order to implement its investment policy and may have long or short exposures (depending on market conditions) to the derivative financial instruments listed below. The derivative financial instruments used mainly consist of futures, options and financial contracts for difference (CFD) on diversified indices on shares and other equity-related securities, including, among others, the E-mini S&P500 Future, Eurostoxx 50 Future and Nikkei 225 Future indices. Assets underlying derivative financial instruments generally do not apply any ESG criteria. The base currency of the Sub-fund is the Euro (EUR) and the Sub-fund does not intend to hedge the currency risk against other currencies of the investments in its portfolio. The Sub-fund may use currency futures, currency swaps and currency options for investment purposes in order to dynamically adjust the overall currency exposure of the portfolio according to market opportunities. The Sub-fund aims at maintaining a leverage lower than 150%, calculated on the total of all derivative instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 6) and 25) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR REFERENCE CURRENCY: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



EUR NON HEDGED No

A-INSTITUTIONAL EURO (DIS) EUR NON HEDGED No A-INSTITUTIONAL USD (ACC) USD NON HEDGED No A-INSTITUTIONAL USD (DIS) USD NON HEDGED No Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) exclusively for institutional investors.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS)

488

including any subscription fees and costs (please see Appendix V which is specific for institutional investors).


Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy.

Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:


“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the

489

difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS) Units and shall reinvest revenue of Unitholders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December.


490








491


In addition, the Sub-fund will use currency future contracts, currency futures and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 11) and 12) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



EUR NON HEDGED No

A-INSTITUTIONAL EURO (DIS) EUR NON HEDGED No A-INSTITUTIONAL USD (ACC) USD HEDGED Hedging against EUR A-INSTITUTIONAL USD (DIS) USD HEDGED Hedging against EUR Unit class: the Sub-fund shall issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS). The various Unit classes are described in chapter 8 and in Appendix II of the present Prospectus. Minimum initial subscription amount: the minimum initial subscription amount is:

• EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS), • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS)


492

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus.













493



Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units and shall reinvest revenue of Unitholders of class A-INSTITUTIONAL EURO (DIS) et A-INSTITUTIONAL USD (DIS) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.01% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

494








495





EUR NON HEDGED No




496

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus.













497



Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units and shall reinvest revenue of Unitholders of class A-INSTITUTIONAL EURO (DIS) et A-INSTITUTIONAL USD (DIS) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.01% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

498

“AZ Bond – Target 2024” Sub-fund factsheet

General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve capital growth until the target maturity date of 30 June 2024. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities issued by governments, supranational institutions or governmental bodies around the world and/or companies around the world. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund will be managed with a target maturity date of 30 June 2024. The portfolio is composed of fixed and/or floating rate debt securities, and has an effective duration that is close to the target maturity date. In order to actively manage the Sub-fund in the interest of investors, the duration of the portfolio may deviate by 6 months from the target maturity without substantially changing the risk profile of the Sub-fund. The Sub-fund invests between 70% and 100% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies from developed countries and/or companies with their head offices in developed countries. The Sub-fund invests up to 30% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies headquartered in emerging countries. The Sub-fund invests up to 70% of its net assets in debt securities rated sub-investment grade. The Sub-fund may also invest:





The Sub-fund does not invest in shares and equity-related securities other than those resulting from the conversion of debt securities and up to a maximum of 5% of its net assets. The Sub-fund may invest up to 20% of its net assets in cash and money market instruments up to 3 months before the target maturity date. Cash and money market instruments may represent up to 100% of the Sub-fund’s net assets during the period from 3 months before and up to 3 months after the target maturity date (30 June 2024). The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, Bund Future, Euro BOBL Future, BTP Future, Short term Euro-BTP futures and US10YR Note Future. The Sub-fund may also use credit default swaps (CDS) to manage the overall credit risk of the portfolio, and may invest up to 30% of its net assets in CDS for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund shall not invest in asset-backed securities (ABSs) and/or mortgage-backed securities (MBSs).

499

After the target maturity date of 30 June 2024, the Sub-fund may either be liquidated, if the Company considers that this option is in the best interests of investors, or continue to be managed within the investment limits set out above without reference to a future target date or any life cycle constraints. The Unitholders of the Sub-fund will receive a notice informing them of the decision either to continue the management or to liquidate the Sub-fund. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro. The sub-fund may use currency futures contracts, currency futures and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. The net exposure to currencies other than the Sub-fund’s base currency is limited to 20%.

In addition, the Sub-fund will use currency futures, currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraphs 11), and 12) of section III, chapter 3, of this Prospectus. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



EUR NON HEDGED No




500

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus.

An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period.











501


The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to Unitholders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units and shall reinvest revenue of Unitholders of class A-INSTITUTIONAL EURO (DIS) et A-INSTITUTIONAL USD (DIS) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.01% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

502

"AZ Equity – China" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies that have their head office and/or conduct a predominant part of their economic activities and/or whose assets are located in the Greater China region, and listed on domestic exchanges in Mainland China and/or on any other stock exchange in the world. As part of the Sub-Fund's investment policy, the "Greater China" region includes Mainland China, Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests directly or indirectly at least 80% of its net assets in shares and other equity-related securities issued by companies that have their head office in the "Greater China" region, and are listed on a "Greater China" stock exchange and/or on any other stock exchange in the world. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices and other similar securities. In particular, the Sub-fund invests at least 80% of its net assets in:

- shares and other equity-related securities listed on the stock exchange in Mainland China (through Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect);

- shares and other equity-related securities listed on the Hong Kong stock exchange (including Chinese Class A shares and Chinese Class H shares);

- shares and other equity-related securities listed on the Taiwan Stock Exchange; - Chinese American Depositary Receipts (ADR) listed in the United States; - futures and options on shares and other equity-related securities and/or indices on shares and other

equity-related securities linked to the Chinese stock exchange, including, among others, the FTSE CHINA A50 index traded in Singapore, H Shares HSCEI Futures and Hang Seng HK Futures;

- financial contracts for differences (CFDs) on shares and other equity-related securities and/or equity indices and other similar securities of companies belonging to the "Greater China" region.


- up to 10% of its net assets in debt securities with a residual maturity of up to 12 months and money market instruments, denominated in US dollars or offshore renminbi (CNH), issued by governments, supranational institutions and governmental bodies in the "Greater China" region and companies headquartered in the "Greater China" region;

- up to 10% of its net assets in units of UCITS and/or other UCIs; and - up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified. The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type).

503

LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as explained in detail under paragraph 3), 4), 5), 7), 8) of section III, chapter 3, of this Prospectus. In addition to the risk factors set out in the general section of the Prospectus in section III "Risk Factors" of chapter 3, the following specific risk factors are associated with the Sub-fund's investments: Specific risks linked to investment in Chinese class A shares In addition to the risks linked to investments in securities from emerging and less developed countries, the Sub-fund may be exposed to specific risks linked to investment in Chinese class A shares via Stock Connect. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference



EUR NON HEDGED No


USD NON HEDGED No

Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL USD (ACC) exclusively for institutional investors.

Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) including any subscription fees and costs (please see Appendix V which is specific for institutional investors).


Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units may only be subscribed in a single solution.

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. MANAGER: AZ Investment Management Singapore Ltd has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZ Investment Management Singapore Ltd is a Limited Company established under Singapore law. Its registered office is at 2 9 Temasek Boulevard, Suntec Tower 2, #44-02, Singapore 038989.

504

INVESTMENT ADVISOR: AN ZHONG (AZ) INVESTMENT MANAGEMENT HONG KONG Ltd. has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. Consulting services will be provided directly by AZ Investment Management Singapore Ltd (i.e. the Manager). An Zhong (AZ) Investment Management Hong Kong Ltd. is a Limited Company established under Hong Kong law, with registered office at Suite 2702, 27/F, The Centrium, 60 Wyndham Street, Hong Kong. MANAGEMENT FEE AND ADDITIONAL VARIABLE MANAGEMENT FEE: a management fee is payable for this Sub-fund as indicated in Appendix II of this Prospectus. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



505

The Manager receives a fee for the management services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy: the Sub-fund shall apply an income capitalisation policy.


506

"AZ Equity – Egypt" Sub-fund factsheet

General Information INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities listed principally on a stock exchange in Egypt and/or issued by companies that have their head office in Egypt and/or that carry out a predominant part of their economic activities in Egypt. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets in shares and other equity-related securities issued by companies that have their head office in and/or conduct a predominant part of their economic activities in Egypt, and are listed on a stock exchange in Egypt or any other stock exchange in the whole world. The Sub-fund may also invest:

− Up to 20% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies worldwide and/or companies from all over the world, including emerging countries, without rating constraints;

− Up to 10% of its net assets in units of UCITS and/or of other UCIs; − Up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an

attractive return potential and risk profile to be identified. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the US dollar (USD) and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 100 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: USD Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


exchange rate risk A-INSTITUTIONAL EURO (ACC)

EUR NON HEDGED No

A-INSTITUTIONAL USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL USD (ACC) exclusively for institutional investors. Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC)

507

including any subscription fees and costs (please see Appendix V which is specific for institutional investors). Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors.

Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units may only be subscribed in a single solution. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. MANAGER: AZIMUT (DIFC) Limited has been appointed as Manager for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. AZIMUT (DIFC) Limited is incorporated as a limited liability company under the laws of the Dubai International Financial Centre and its registered office is located at Central Parks Towers, Unit 45, Floor 16, Dubai International Financial Centre, PO Box 506944, Dubai, United Arab Emirates. INVESTMENT ADVISOR: AZIMUT (ME) Limited has been appointed as Investment Advisor for this Sub-fund, based on an agreement entered into for an indefinite period but subject to termination by either party. Consulting services will be provided directly to AZIMUT (DIFC) Limited (i.e. the Manager). AZIMUT (ME) Limited was incorporated as a limited liability company under the laws of Abu Dhabi Global Market and its registered office is located at Al Khatem Tower, Unit 2, Floor 7, ADGM Square, Al Maryah Island, PO Box 764630, Abu Dhabi, United Arab Emirates. Management fee and additional variable management fee: a management fee is payable for the Units being exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed.

508




509

"AZ Equity - Borletti Global Lifestyle" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a portfolio of shares and other equity-related securities issued by companies worldwide, with a focus on the consumer sector. The bottom-up selection procedure for shares and other equity-related securities is focused on companies managed with a high standard of quality, current robust business models, a high return on invested operating capital, high underwriting restrictions, a dominant market position, comparative advantages and a high potential for reinvestment growth from their cash flows to high levels of return. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests at least 80% of its net assets directly or indirectly in shares and other equity-related securities issued by companies with their head office throughout the world. Indirect exposure to these companies is obtained by investing in equity derivative financial instruments and other similar securities and/or equity indices. The Sub-fund may also invest:

- Up to 30% of its net assets in shares and other equity-related securities issued by companies with their head office and/or which carry out a predominant part of their economic activities in emerging countries;

- Up to 30% of its net assets in investment grade debt securities issued by companies having their head office in developed countries;

- Up to 10% of its net assets in units of UCITS and/or of other UCIs; - Up to 30% of its net assets in cash when market conditions do not allow sufficient investments with an


The Sub-fund does not invest in debt securities rated sub-investment grade at the time of purchase. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on shares and/or other equity-related securities, equity indices, including, among others, E-mini S&P500 Future, NASDAQ 100 E-Mini futures and Eurostoxx 50 Future. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), contingent convertible bonds (CoCo bonds), or defaulted securities, or those experiencing any difficulty at the time of purchase. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated:

510



A-INSTITUTIONAL EURO (ACC) EUR NON HEDGED No A-INSTITUTIONAL USD (ACC) USD NON HEDGED No Unit class: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL USD (ACC) exclusively for institutional investors. Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC)

including any subscription fees and costs (please see Appendix V which is specific for institutional investors). Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors.

Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units may only be subscribed in a single solution. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: Borletti Management Ltd. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 09/11/2018 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ prior notice. Borletti Management Ltd. a company incorporated and existing under the UK laws, having its registered office at 60, Sloane Avenue, London SW3 3BX. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed.

511



“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.01% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

512

“AZ Allocation – Global Conservative” Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of debt securities and shares and other equity-related securities. The Sub-fund actively manages the allocation between equities and debt securities, based on the expected risk and return between these two asset classes. The fixed and/or variable income debt securities, mainly of investment grade rating, are the main items in the Sub-fund's portfolio. The remaining part of the portfolio will be invested in shares and other equity-related securities throughout the world. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 60% and 100% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental bodies from developed countries and/or companies with their head offices in developed countries. The Sub-fund invests up to 25% of its net assets in debt securities rated sub-investment grade at the time of purchase. A debt security rated investment grade at the time of acquisition which subsequently becomes sub-investment grade, or rated sub-investment grade at the time of acquisition which subsequently becomes distressed or in default, will not be sold unless, in the opinion of the Manager, it is in the interest of the Unitholders to do so. The Sub-fund invests up to 40% of its net assets in shares and other equity-related securities issued by companies worldwide, including up to 10% of its net assets in emerging countries. The Sub-fund may also invest:

- Up to 15% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of emerging countries and/or companies headquartered in an emerging country;

- up to 15% of its net assets in CoCo bonds; - up to 15% of its net assets in convertible bonds (other than CoCo bonds); - up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 20% of its net assets in cash when market conditions do not allow sufficient investments with an


- futures, options and financial contracts for differences (CFDs) on shares and equity-related securities, and on equity indices, including, among others, E-mini S&P500 Future and Eurostoxx 50 Future;


The Sub-fund may also invest in total return swap contracts. The gross notional exposure to the total return swap contracts shall not exceed 10% of the net assets of the Sub-fund and it is envisaged that this exposure will remain in the range between 0% and 10% of the net assets of the Sub-fund. The strategies underlying total return swap contracts are indices on the main economic sectors including, among others, MSCI World Bank Index, MSCI World Insurance Index and MSCI World Auto & Components Index. The Sub-fund shall not invest in asset-backed securities (ABSs), mortgage-backed securities (MBSs), or defaulted securities, or those experiencing any difficulty at the time of purchase.

513

CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities. In addition, the Sub-fund will use currency futures contracts for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 200 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-AZ FUND CORPORATE (ACC) EUR NON HEDGED No A-AZ FUND CORPORATE (DIS) EUR NON HEDGED No A-AZ FUND USD CORPORATE (ACC) USD HEDGED Hedging against EUR A-AZ FUND USD CORPORATE (DIS) USD HEDGED Hedging against EUR A-INSTITUTIONAL EURO (ACC) EUR NON HEDGED No A-INSTITUTIONAL EURO (DIS) EUR NON HEDGED No A-INSTITUTIONAL USD (ACC) USD HEDGED No A-INSTITUTIONAL USD (DIS) USD HEDGED No Unit Classes: the Sub-fund shall also issue Units of classes A-AZ FUND CORPORATE (ACC), A-AZ FUND CORPORATE (DIS), A-AZ FUND USD CORPORATE (ACC), A-AZ FUND USD CORPORATE (DIS) A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC), and A-INSTITUTIONAL USD (DIS) exclusively for institutional investors. Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-AZ FUND CORPORATE (ACC) and A-AZ FUND CORPORATE (DIS) • USD 250,000 for Units of class A-AZ FUND USD CORPORATE (ACC) and A-AZ FUND USD

CORPORATE (DIS) • EUR 1.000.000 for Units of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) • USD 1.000.000 for Units of class A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) including any subscription fees and costs (please see Appendix V which is specific for institutional investors). Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and Redemptions: For A-AZ FUND CORPORATE (ACC), A-AZ FUND CORPORATE (DIS), A-AZ FUND US CORPORATE (ACC), A-AZ FUND USD CORPORATE (DIS) A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Units of type A-AZ FUND CORPORATE (ACC), A-AZ FUND CORPORATE (DIS), A-AZ FUND USD CORPORATE (ACC), A-AZ FUND USD CORPORATE (DIS), A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) may be underwritten solely as a lump sum.

514

Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ prior notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee will be charged for all classes of Units. The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means:



515

“Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution Policy:

The Sub-fund shall distribute revenue to holders of class A-AZ FUND CORPORATE (DIS), A-AZ FUND USD CORPORATE (DIS), A-INSTITUTIONAL EURO (DIS), and A-INSTITUTIONAL USD (DIS) Units and shall reinvest revenue of holders of class A-AZ FUND CORPORATE (ACC), A-AZ FUND USD CORPORATE (ACC), A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units. Revenue will be distributed yearly, according to the following period: 1 January - 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.01% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

516

"AZ Bond – Global Macro Bond" Sub-fund factsheet General Information

INVESTMENT TARGET: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. INVESTMENT STRATEGY: The Sub-fund seeks to achieve its investment objective by actively investing in a diversified portfolio of fixed and/or variable income debt securities. The Sub-fund uses a top-down investment approach that focuses on macro trends in rates, spreads and liquidity of the various segments of the credit market, and combines long and/or short strategic and tactical positions, while seeking to maximise returns. INVESTMENT POLICY AND RESTRICTIONS: The Sub-fund invests between 50% and 100% of its net assets in debt securities issued by governments, supranational institutions or governmental bodies of OECD member countries and/or companies headquartered in OECD member countries. The Sub-fund invests up to 50% of its net assets in debt securities issued by governments, supranational institutions or governmental bodies of OECD member countries and/or companies headquartered in OECD non-member countries, including emerging countries. The duration of the Sub-fund is between -5 and +10 years. The Sub-fund may invest up to 75% of its net assets in debt securities rated sub-investment grade at the time of their acquisition. Investments in convertible, hybrid and subordinated bonds shall not exceed 60% of the net assets of the Sub-fund, including up to 20% of its net assets in contingent convertible bonds (CoCo bonds) including, among others, "additional tier 1", "restricted Tier 1" and "Tier 2" type CoCo bonds. The Sub-fund may also invest:

- up to 15% of its net assets in asset-backed securities (ABS) and mortgage-backed securities (MBS); - up to 10% of its net assets in units of UCITS and/or of other UCIs; - up to 10% of its net assets in securities that are in default or in difficulty at the time of purchase; - up to 20% of its net assets in money market instruments and/or cash when market conditions do not

allow sufficient investments with an attractive return potential and risk profile to be identified. The Sub-fund uses the following main derivative financial instruments for investment purposes in order to implement its investment policy and/or to hedge risks: futures, options and financial contracts for differences (CFDs) on interest rates, debt securities and ETFs investing in debt securities including, among others, Bund Future, Euro BUXL 30Y Future, Euro BOBL Future, Euro Schatz Future, BTP Future, Short term Euro-BTP futures, Ultra Long Term U.S. Treasury Bond Future, US10YR Note Future and 2-Year US Treasury Note Futures. The Sub-fund may also invest in credit default swaps (CDS) up to 30% of its net assets for investment purposes and up to 100% of its net assets for risk hedging purposes. CURRENCY EXPOSURE AND CURRENCY HEDGING: The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency futures contracts and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to currencies according to market opportunities.

517

In addition, the Sub-fund will use currency futures contracts, currency futures and currency options for hedging purposes with reference to the hedged Unit classes (HEDGED type). LEVERAGE EFFECT: The Sub-fund aims at maintaining a leverage lower than 350 %, calculated on the total of all derivative financial instruments' notional amounts. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-INSTITUTIONAL EURO (ACC) EUR NON HEDGED No A-INSTITUTIONAL EURO (DIS) EUR NON HEDGED No A-INSTITUTIONAL USD (ACC) USD HEDGED Hedging against EUR A-INSTITUTIONAL USD (DIS) USD HEDGED Hedging against EUR Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) exclusively for institutional investors.

Initial subscription and minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) • USD 250,000 for Units of class A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) including any subscription fees and costs (please see Appendix V which is specific for institutional investors).


Subscriptions and Redemptions: For A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units, a subscription fee of maximum 2% is due, calculated on the invested amount, as indicated in Appendix V which is specific for institutional investors. Subscription/redemption lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Class A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD (DIS) Units may only be subscribed in a single solution. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5.000 (or USD 5.000 depending on type of Units subscribed). Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors. Manager: AZ SWISS & PARTNERS SA has been appointed as Manager for the Sub-fund, based on an agreement for an indefinite period but subject to termination by either party with six months’ prior notice. AZ SWISS & PARTNERS SA is a Joint Stock Company (Société Anonyme) established under Swiss law with registered office at Via Carlo Frasca, 5 – 6900 Lugano, Switzerland. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. An additional variable management fee will be charged for all classes of Units.

518

The additional variable management fee is equal to 10% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Company on the first Valuation Date following this Calculation Period. If the Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will crystallize and become payable to the Company on the first Valuation Date following the Calculation Period during which the Units have been redeemed. “Reference index” means: • 3 months Euribor + 2% for NON HEDGED Units • 3 months Euribor + 2% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class,“Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. The Manager receives a fee for consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: the Sub-fund shall distribute revenue to holders of class A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS) Units and shall reinvest revenue of holders of class A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL USD (ACC) Units. Revenue will be distributed quarterly, according to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Taxe d’abonnement: an annual registration tax of 0.05% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

519

“Convertible Bond” Sub-fund factsheet General Information

Investment policy: With a view to enhancing the value of its assets in the medium/long term, the Sub-fund will invest primarily - that is to say between 50% and 100% of its net assets - in units of UCITS and/or other UCI oriented to convertible bonds investments. With a view to pursuing flexible management of the Sub-fund, the Company may also invest up to 50% of net assets of the Sub-fund: • in government and supranational bonds; • in units of UCITS and/or other UCI oriented towards investment in government and/or supranational

securities; • in units of UCITS and/or other UCI oriented towards investment in corporate bonds; • in units of UCITS and/or other UCI oriented towards equity investments; • in equity financial instruments and/or equity-related securities (e.g., warrants and American Depositary

Receipt (ADR)). The Sub-fund is not subject to any restrictions in terms of countries, geographical areas, sectors, duration, currencies, issuer’s rating. Furthermore, the Sub-fund may hold liquid assets. The Sub-fund may be indirectly exposed through investments in units of UCITS and/or other UCI, in high yield bonds and/or distressed securities. The Sub-fund may also use derivative financial instruments – not only on the above-mentioned instruments for direct investment purposes, but also for hedging purposes (against market, securities, interest rate, exchange rate, credit risks etc.). For the purposes of effective portfolio management, derivative financial instruments can be used to an accessory extent. The amount of the expected leverage, calculated on the total of all derivative instruments' notional amounts would be 300%. Base currency of the Sub-fund: EUR Reference currency: the net asset value (“N.A.V.”) of the Sub-fund Units shall be denominated: Sub-fund Unit Reference


rate risk A-INSTITUTIONAL EURO (ACC) EUR NON HEDGED No Unit Classes: the Sub-fund shall also issue Units of classes A-INSTITUTIONAL EURO (ACC) exclusively for institutional investors. Minimum initial subscription amount: the minimum initial subscription amount is EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) including any subscription fees and costs (please see Appendix V which is specific for institutional investors). Frequency of net asset value calculation: the NAV will be calculated daily. Subscriptions and redemptions: the minimum initial subscription amount is set at EUR 250,000 for Units of class A-INSTITUTIONAL EURO (ACC) including any subscription fees and costs (please see Appendix V which is specific for institutional investors). Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V which is specific for institutional investors. The minimum transferable amount is EUR 5,000. Conversion lists are closed at the times and dates indicated in Appendix V which is specific for institutional investors.

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Investment Advisor: AZIMUT CAPITAL MANAGEMENT SGR S.p.A. has been appointed as Investment Advisor for the Sub-fund, based on an agreement dated 13 June 2005 and subsequently amended, for an indefinite period but subject to termination by either party with three months’ notice. AZIMUT CAPITAL MANAGEMENT SGR S.p.A. is a Joint Stock Company (Società per Azioni) established under Italian law with registered office at Via Cusani 4, MILAN-20121 Italy. Management fee and additional variable management fee: a management fee is payable for the Units exclusively for institutional investors as indicated in Appendix V which is specific for institutional investors. For this Sub-fund also a fee for selection, reporting and monitoring of counterparties managing the target UCI/UCITS is applicable and due to the Management Company, with an annual maximum equal to 0.10% of Sub-fund net assets. Any additional variable management fee amounts to 0.007% of the total value of the Sub-fund (net of all liabilities other than the additional variable management fee, if applicable) for each percentage point of return generated by the Sub-fund. The return of the Sub-fund is intended as the increase, expressed as an annualised percentage, in the net asset value per unit calculated (net of all liabilities other than the additional variable management fee, if applicable) on the last business day of the month compared with the net asset value (as defined in chapter 12 above of this Prospectus) per unit on the corresponding business day of the previous quarter. The payment of any additional variable management fee shall be made on a monthly basis. The Investment Advisor receives a fee for the consultancy services on behalf of the Sub-fund. This fee is paid by the Fund and shall not exceed 50% of the net management fee received by the Management Company. Distribution policy: The Sub-fund shall apply an income capitalisation approach. Listing: Sub-fund Units shall not be listed on the Luxembourg stock exchange. Registration tax: an annual registration tax of 0.01% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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“AZ Bond – Long Term Credit Opportunities” Sub-fund factsheet

General information INVESTMENT OBJECTIVE: The investment objective of the Sub-fund is to achieve medium and long-term capital growth. Investment strategy: The Sub-fund seeks to achieve its investment objective by actively managing a diversified portfolio of fixed and/or variable income debt securities issued by governments, supranational institutions or governmental bodies worldwide and/or companies worldwide. The Sub-fund focuses preferably on high-yield securities such as high-yield bonds and emerging market debt securities, including frontier markets. Frontier markets are less advanced capital markets than in developing countries. Frontier markets are better established than the least developed countries but not as well established as emerging countries because they are too small, entail more inherent risks or are not sufficiently liquid in order to be considered as an emerging market. For the purposes of the investment policy of the Sub-fund, frontier markets are the markets featuring in the NexGem Index and include, among others, Angola, Azerbaijan, Bolivia, Costa Rica, Ivory Coast, Ghana, Honduras, Jamaica, Kenya, Mongolia, Nigeria, Papua New Guinea, El Salvador, Senegal, Sri Lanka and Zambia. Investment policy and restrictions: The Sub-fund invests up to 100% of its net assets in debt securities and money market instruments issued by governments, supranational institutions or governmental authorities of developed countries and/or companies headquartered in a developed country. The Sub-fund invests up to 60% of its net assets in debt securities issued by governments, supranational institutions or governmental authorities of emerging countries (including frontier markets) and/or companies headquartered in an emerging country (including frontier markets); Cumulative investments in debt securities issued by frontier market issuers do not exceed 30% of the Sub-fund’s net assets. The Sub-fund invests up to 70% of its net assets in debt securities with a sub-investment grade rating and up to 30% of its net assets in unrated debt securities. A debt security rated investment grade at the time of acquisition which subsequently becomes sub-investment grade, or is rated sub-investment grade at the time of acquisition and subsequently becomes distressed or in default, will not be sold unless, in the opinion of the Manager, it is in the interest of the Unitholders to do so. The Sub-fund invests up to 60% of its net assets in hybrid bonds, subordinated bonds (other than contingent convertible bonds (CoCo bonds)) and/or perpetual bonds issued by financial and non-financial institutions, and up to 20% of its net assets in CoCo bonds including, among others, “additional tier 1”, “restricted Tier 1” and “Tier 2” CoCo bonds. The Sub-fund may also invest:

• up to 30% of its net assets in convertible bonds (other than CoCo bonds); • up to 10% of its net assets in distressed securities (including up to 5% of its net assets in defaulted

securities); • up to 10% of its net assets, either directly or indirectly, in equities and other equity-related securities

issued by companies worldwide, including emerging countries; indirect exposure to these companies is obtained by investing in equity derivative financial instruments and equivalent derivative financial instruments and/or equity indices;

• up to 10% of its net assets in units of UCITS and/or of other UCIs; • up to 20% of its net assets in cash when because of market conditions it is not possible to identify

sufficient investments with an attractive return potential and risk profile.

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• futures, options and contracts for difference (CFD) on interest rates, debt securities and ETFs that invest in debt securities, including, among others, Bund Future, Euro BOBL Future, BTP Future, Short term Euro-BTP futures and US10YR Note Future;

• futures, options and contracts for difference (CFD) on equities and other equity-related securities, equity indices and indices of other equity-related securities, including among others E-mini S&P500 Future, Eurostoxx 50 Future and MSCI Emerging Markets Index Futures.

The Sub-fund may also use credit default swaps (CDS) to manage the overall credit risk of the portfolio, and may invest up to 30% of its net assets in CDS for investment purposes and up to 100% of its net assets for risk hedging purposes. The Sub-fund does not invest in asset-backed securities (ABS) and/or mortgage-backed securities (MBS). Currency exposure and currency hedging: The base currency of the Sub-fund is the euro. The base currency of the Sub-fund is the Euro and the Sub-fund does not intend to systematically hedge the currency risk against other currencies of its investments in its portfolio. The Sub-fund may use currency futures, currency forwards and currency options for investment purposes in order to dynamically adjust the overall exposure of its portfolio to specific currencies in line with market opportunities. In addition, the Sub-fund will use currency forwards, currency futures and currency options for hedging purposes with reference to the Hedged Unit Classes (HEDGED type). Leverage effect: The Sub-fund aims at maintaining a leverage effect lower than 300%, calculated on the total of all derivative financial instruments' notional amounts. Specific risks: Investors in this Sub-fund are exposed to specific risks as defined in detail in paragraphs 11), 12) and 26) of section III, chapter 3 of this Prospectus. Base currency of the Sub-fund: EUR Reference currency the net asset value (“N.A.V.”) per Sub-fund Unit will be expressed as follows: Sub-fund Unit Reference

currency Type of hedging Hedging against currency

risk A-AZ FUND CORPORATE EUR (ACC) EUR NON HEDGED No A-AZ FUND CORPORATE USD Hedged (ACC)

USD HEDGED Hedged against the EUR

A-INSTITUTIONAL EURO (ACC) EUR NON HEDGED No A-INSTITUTIONAL EURO (DIS) EUR NON HEDGED No A-INSTITUTIONAL USD (ACC) USD NON HEDGED No A-INSTITUTIONAL USD (DIS) USD NON HEDGED No A-INSTITUTIONAL USD Hedged (ACC) USD HEDGED Hedged against the EUR A-INSTITUTIONAL USD Hedged (DIS) USD HEDGED Hedged against the EUR Specific features of the “Servizio distribuzione proventi” (income distribution service): the Management Company makes available to Unitholders that so wish a so-called Servizio distribuzione proventi. This service is available on a quarterly basis (April – July – October - January of each year) This service allows any Unitholders that have signed up for the service - either upon subscription or during their investment period - to redeem quarterly a number of their units in two ways.

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The first way involves making available to Unitholders on a quarterly basis (April – July – October – January of each year) the countervalue of a number of units corresponding to the amount (partial or full, at the above Company’s discretion) of income (e.g. dividends, coupons, interest on assets) received on investments made by the Sub-fund during the period63. For this purpose, the Management Company informs investors via a notice on its website www.azimut.it indicating the total gross amount available for distribution, expressed as a percentage of the Sub-fund’s net assets. Investors signing up for this service will therefore see a number of their units redeemed depending on the income received by the Sub-fund, on the basis of a percentage determined by the Management Company. In unfavourable market conditions, the Management Company may suspend the distribution of income, in some cases for more than three months, giving specific notice on the abovementioned website. The second way involves making available to Unitholders on a quarterly basis (April – July – October – January of each year) a percentage of the countervalue of their investment in the Sub-fund, regardless of the net asset value of the units and whether or not income is received by the Sub-fund in the relevant period. Each investor will set the percentage of redemption that they want over the period in question and this percentage may be higher or lower than the percentage determined by the Management Company in the first Servizio distribuzione proventi method. Unitholders can cancel this service at any time, in which case the Servizio distribuzione proventi automatic redemption will end. The Servizio distribuzione proventi is not available to investors that subscribe to A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS) and A-INSTITUTIONAL USD Hedged (DIS) Units. Unit Classes: the Sub-fund will issue A-AZ FUND CORPORATE EUR (ACC) A-AZ FUND CORPORATE USD Hedged (ACC), A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL USD Hedged (ACC) and A-INSTITUTIONAL USD Hedged (DIS) Units intended exclusively for institutional investors. Minimum initial subscription amount: the minimum initial subscription amount is: • EUR 250,000.00 for A-AZ FUND CORPORATE (ACC) Units, • USD 250,000.00 for A-AZ FUND CORPORATE USD Hedged (ACC) Units, • EUR 1,000.000.00 for A-INSTITUTIONAL EURO (ACC) and A-INSTITUTIONAL EURO (DIS) Units • USD 1,000,000.00 for A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL

USD Hedged (ACC) and A-INSTITUTIONAL USD Hedged (DIS) Units including any and all subscription fees and costs (please see Appendix V specific to institutional investors). Frequency of net asset value calculation: the N.A.V. will be calculated at weekly intervals, specifically on each Monday that is a full bank working day and on which the National Stock Exchange is open in Luxembourg (Calculation Day), or failing that the following working day. Initial subscription: the Board of Directors of the Management Company reserves the right to launch the Sub-fund at a later date. The initial price is:



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• EUR 5.00 for A-AZ FUND CORPORATE (ACC), A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS) Units • USD 5.00 for A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-AZ FUND CORPORATE USD Hedged (ACC), A-INSTITUTIONAL USD Hedged (ACC) and A-INSTITUTIONAL USD Hedged (DIS) Units Subscriptions and redemptions: A maximum subscription fee of 6% of the amount invested will be payable for Units of class A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL USD Hedged (ACC) and A-INSTITUTIONAL USD Hedged (DIS), as mentioned in Appendix V specific to institutional investors. No subscription fee is payable for Units of class A-AZ FUND CORPORATE Hedged (ACC) and A-AZ FUND CORPORATE USD (ACC): Subscription/redemption lists are closed at the times and dates indicated in Appendix V specific to institutional investors. The subscription fee will be paid to the distributor. Units of the class A-AZ FUND CORPORATE (ACC) A-AZ FUND CORPORATE USD Hedged (ACC), A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL USD Hedged (ACC) and A-INSTITUTIONAL USD Hedged (DIS) may be subscribed to exclusively by a lump-sum payment. Conversion: the methods used to convert the Units of one Sub-fund into another are described in chapter 11 of the Prospectus. As for the conversion fee, please see Appendix V specific to institutional investors. The minimum transferable amount is EUR 5,000.00 (or USD 5,000.00 depending upon the class of Unit subscribed to). Management fee and additional variable management fee: a management fee is payable for this Sub-fund, as indicated in Appendix II of this Prospectus. There is no additional variable management fee for A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL USD Hedged (ACC) and A-INSTITUTIONAL USD Hedged (DIS) Units An additional variable management fee will be payable for Units of classes A-AZ FUND CORPORATE (ACC), A-AZ FUND USD CORPORATE Hedged (ACC). The additional variable management fee is equal to 20% of the difference - if positive - between the Unit Return and the Reference Index Return during the Calculation Period. During each Calculation Period, the additional variable management fee is calculated and accrued on each Valuation Date, it being specified that, for the avoidance of doubt, the variable management fee accrued (if any) on the previous Valuation Date during the relevant Calculation Period is no longer taken into consideration. The accumulated variable management fee (if any) is accrued on the last Valuation Date of each Calculation Period and becomes payable to the Management Company on the first Valuation Date following this Calculation Period. If Units are redeemed during a Calculation Period, the accumulated but not yet paid variable management fee, calculated for such Units on the Valuation Date on which such Units are redeemed, will be applied and become payable to the Management Company on the first Valuation Date following the Calculation Period during which the Units were redeemed. “Reference index” means: • 3-month Euribor + 2.5% for NON HEDGED Units

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• 3-month Euribor + 2.5% + Hedging costs for HEDGED Units “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the last Valuation Date of the previous Calculation Period. For the first Calculation Period of a newly launched Unit Class, “Return on Units” means the difference - if positive - between the Reference Net Asset Value per Unit on each Valuation Date and the Reference Net Asset Value per Unit on the first Valuation Date of this Calculation Period. “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the last Valuation Date of the previous Calculation Period. For the first Calculation Period, “Reference Index Return” means the difference between the Reference Index on each Valuation Date and the Reference Index on the first Valuation Date of this Calculation Period. “Reference Net Asset Value” means, on each Valuation Date, the Net Asset Value of the relevant Unit class, calculated on that Valuation Date, increased by the accumulated variable management fee (if any) and distributions (dividends), if any, during the relevant Calculation Period. “Calculation Period” means the period from 1 January to 31 December of each year, provided that the first Calculation Period begins on the launch date of the Unit class and ends on 31 December following its launch. “Hedging Costs” means the hedging costs between the reference currency of the Unit class and the base currency of the Sub-fund, corresponding to the difference (in percentage terms), on each Valuation Date, between (i) the price of the 3-month maturity exchange rate between the reference currency of the Unit class and the base currency of the Sub-fund, and (ii) the spot rate of the same exchange rate. Distribution policy: the Sub-fund will distribute income to Unitholders of classes A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (DIS) and A-INSTITUTIONAL USD Hedged (DIS) and will reinvest income for Unitholders of classes A-AZ FUND CORPORATE (ACC), A-AZ FUND CORPORATE USD Hedged (ACC), A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL USD (ACC) and A-INSTITUTIONAL USD Hedged (ACC). Income is distributed quarterly with reference to the following periods: 1 January – 31 March; 1 April – 30 June; 1 July – 30 September; 1 October – 31 December. Listing: this Sub-fund’s Units will not be listed on the Luxembourg stock exchange. Annual registration tax: an annual registration tax of 0.01% is payable, calculated based on the net assets of the Sub-fund at the end of each quarter.

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APPENDIX V: VARIOUS UNIT CLASSES FOR INSTITUTIONAL INVESTORS AND RESPECTIVE FEES.

The fee system is as follows.

Unit Classes A-INSTITUTIONAL EURO (ACC), A-INSTITUTIONAL EURO (DIS), A-INSTITUTIONAL USD (ACC), A-INSTITUTIONAL USD (DIS), A-INSTITUTIONAL GBP (ACC) A-INSTITUTIONAL GBP (DIS)

Subscription (2) Max 2%

Redemption 0

Conversion 0

Management fee (annual, in %)(1) AZ Equity – Borletti Global Lifestyle 1.00% AZ Equity – Brazil Trend 1.00% AZ Equity - China 1.00% AZ Equity – Global ESG 1.00% AZ Equity – Egypt 1.00% AZ Allocation – Global Income 1.00% Active Selection 1.00% AZ Equity – Global Growth 1.00% AZ Equity – Long Term Equity Opportunities Classes A-AZ Fund Corporate: 1.80%

Classes A-Institutional: 1.00% Core Brands 0.80% Global Unconstrained Bond Fund 0.80% Hybrid Bonds 0.80% AZ Alternative – Arbitrage 0.80% Munis Yield 0.80% Real Plus 0.80% Equity Options 0.80% AZ Alternative – Smart Risk Premia 0.80% AZ Bond – Sustainable Hybrid 0.80% AZ Bond – Target 2023 0.80% AZ Bond – Target 2024 0.80% AZ Bond – Target 2025 0.80% Italian Excellence 7.0 0.70% AZ Allocation – Global Conservative Classes A-AZ Fund Corporate: 0.80%

Classes A-Institutional: 0.60% AZ Bond – Global Macro Bond 0.80% Convertible Bond 0.80%

(1) The management fee, based on the total value of each Sub-fund (net of all various liabilities other than the management fee and any additional variable management fee), for each past month, shall be payable on a monthly basis.

(2) A maximum subscription fee of 6% of the amount invested will be payable for Units of the class “A-Institutional” of the AZ Bond – Long Term Credit Opportunities and AZ Bond – Long Term Equity Opportunities Sub-funds.

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Subscription, redemption and conversion lists (valid for all Sub-funds except for “AZ Equity – Egypt”, “AZ Equity – Long Term Equity Opportunities” and “AZ Bond – Long Term Credit Opportunities”, for which it is recommended to refer to the above-mentioned lists) TYPE 1 Sub-funds:

• AZ Equity – Borletti Global Lifestyle • AZ Equity – Brazil Trend • Active Selection • AZ Allocation - Global Income • Global Unconstrained Bond Fund • AZ Equity - Global Growth • Core Brands • Hybrid Bonds • AZ Alternative – Arbitrage • Munis Yield • Real Plus • Equity Options • Italian Excellence 7.0 • AZ Alternative – Smart Risk Premia • AZ Bond – Sustainable Hybrid • AZ Bond – Target 2023 • AZ Bond – Target 2024 • AZ Bond – Target 2025 • AZ Allocation – Global Conservative • AZ Bond – Global Macro Bond

TYPE 3 Sub-funds:

• AZ Equity - China • AZ Equity – Global ESG • Convertible Bond

Subscription, redemption or conversion lists are closed:

• at 2.30 p.m. one day prior to the net asset value Valuation Day • at 2.30 p.m. two days prior to the net asset value Valuation Day if the request concerns, even partially,

TYPE 3 Sub-funds (*).

Subscription, redemption or conversion applications received before the deadlines shall be processed at the net asset value of the Valuation Date prior to the Valuation Day. Subscription, redemption or conversion applications received after the deadlines shall be processed at the net asset value of the following Valuation Date (as described in the individual Sub-fund factsheets). (*) In the sole case of applications for conversion from TYPE 1 Sub-funds into TYPE 3 Sub-funds, subscriptions to TYPE 3 Sub-funds are settled one day after the units of TYPE 1 Sub-funds have been redeemed. Subscription, redemption or conversion lists for " AZ Equity – Egypt" Sub-fund only With reference to the transactions concerning "AZ Equity - Egypt" Sub-fund:

• subscription and conversion lists into the Sub-funds are closed at 2.30 p.m. two days prior to the net asset value Valuation Day.

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• redemption and conversion lists from the Sub-fund are closed at 2.30 p.m. of the tenth working day prior to the net asset value Valuation Day.

Subscription, redemption, conversion lists for the “AZ Equity – Long Term Equity Opportunities” and “AZ Bond – Long Term Credit Opportunities” Sub-funds: As regards transactions relating to the “AZ Equity – Long Term Equity Opportunities” and “AZ Bond – Long Term Credit Opportunities” Sub-funds:

• lists for the subscription to and conversion into the Sub-funds are closed at 14:30 on the fifth working day prior to the net asset value calculation date

• lists for the redemption of and conversion out of the Sub-funds are closed at 14:30 on the fifth working day prior to the net asset value calculation date.

Date post:	26-Oct-2021
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